1040-US: Entering an employer-match contribution rate different than the default rate for a SIMPLE plan

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Question

How do I enter an employer-matching contribution rate different than the UltraTax CS default rate of 3 percent for a SIMPLE plan?

Answer

When calculating a SIMPLE deduction, UltraTax CS defaults to an employer-matching contribution equal to 3 percent of net earnings from self-employment. Note that for SIMPLE 401(k) plans no more than $265,000 of net self-employment earnings can be taken into account when figuring elective/non-elective or matching contributions. This net earnings threshold limit does not apply for SIMPLE IRAs. To adjust the 3 percent rate, enter the correct rate in the Limitation percentage (Force) field in Screen Keogh. UltraTax CS will calculate the maximum deduction using the alternate rate entered, not to exceed 3 percent.

Related topic: Keogh, SEP, and SIMPLE contributions FAQs (1040)

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