2025 SIMPLE IRA Limits + CFP® Prep Clarification

RachelSeton_CFFP
RachelSeton_CFFP CFFP Faculty & Instructors Posts: 152
edited June 23 in Financial Planners Professional Community

Hello @DavidMannaioni_CFFP and @GaryClement_CFFP

I’m starting a new thread so you can assist the student with their questions. The question was originally sent to me directly through messaging on my community account. I’m reposting it here so everyone can see it.

Below is the original inquiry:

Can you assist with questions for ID: 1757275?
I believe the answer should be $23,500, not $24,000. Also, where does the $17,000 employee deferral come from for 2025 when the tax tables show $16,500?

Additionally, @Isabel9393695 is enrolled in the July CFP® Exam Prep Review. She has a follow-up question:

Jerry, age 48, works for Parts Unlimited Inc. and earns $360,000 per year. The company provides a nonelective contribution under a SIMPLE IRA plan. What is the maximum amount Jerry can contribute to the account for 2025 (including both employer and employee contributions)?

Thanks for your help!

Tagged:

Comments

  • DavidMannaioni_CFFP
    DavidMannaioni_CFFP CFFP Faculty & Instructors Posts: 49

    I will defer to Gary to respond to why the question has incorrect numbers, but will say that the numbers you state are correct for 2025. Even though the question has bad numbers in it, what is more important is that1) you figured that out and know what the correct numbers should be, and 2) you know you can do the math with the correct numbers and get the correct answer once that question is corrected or you are asked similar question later. I apologize for the error, but with the thousands of questions we have it is possible a couple will be incorrect. I'm not making an excuse, just explaining the reality.

  • RachelSeton_CFFP
    RachelSeton_CFFP CFFP Faculty & Instructors Posts: 152

    Thank you, @DavidMannaioni_CFFP .

    @GaryClement_CFFP Would you be able to assist?

Categories