Get T Rowe Price Ira Distribution Form

The contribution limits for your SIMPLE IRA plan are separate from the limits for your SEP plan. Assuming you are not also an owner of your employer's business, you can contribute the maximum to both plans.

If you choose to use the Form 5305-SEP, you cannot have any other retirement plan, except for another SEP. When an employer adopts a SIMPLE IRA plan, the employer cannot have any other retirement plan regardless of the method used to start the plan.

The contribution limits of a SIMPLE IRA vs. SEP-IRA are different too. The SEP-IRA limit in 2023 is 25% of an employee's salary or up to $66,000, whichever is less. The SIMPLE IRA contribution limit is $15,500 for 2023, with a catch-up contribution limit of $3,500.

A SEP IRA allows employers to contribute up to $61,000 (in 2022), or up to 25 percent of an employee's salary, whichever is less. In contrast, a SIMPLE IRA allows employees to contribute up to $14,000 (in 2022), while employers can add additional contributions.

SEP contributions and earnings are held in SEP-IRAs and can be withdrawn at any time, subject to the general limitations imposed on traditional IRAs. A withdrawal is taxable in the year received. If a participant makes a withdrawal before age 59½, generally a 10% additional tax applies.

To withdraw assets, contact T. Rowe Price at 1-800-492-7670 or at P.O. Box 17350, Baltimore, MD 21297-17350. Please note that if you have not yet reached age 59½ and no exception applies, you may be subject to a 10% penalty.

A SIMPLE IRA allows both the employee and the small business owner or sole proprietor to make contributions. A SEP-IRA, meanwhile, only allows business owners to make contributions for both themselves and their employees.

You can both receive employer contributions to a SEP-IRA and make regular, annual contributions to a traditional or Roth IRA. Employer contributions made under a SEP plan do not affect the amount you can contribute to an IRA on your own behalf.