waterboy

I am 54 and changing jobs from one with a 401k to one with a simple IRA. I have already this year contributed $15k to the 401k. How much may I contribute to the simple IRA. Not sure if I can add $5500 to the simple (20,500-15K) assuming that the salary reduction annual limit mentioned in pub 590 is bumped up for the catchup provision of 5K or add $500 (15.5K-15K) if the $15,500 from pub 590 is not bumped up for the catchup provision or $2500 that is mentioned at the end of the pub 590 extract.

The following is from pub 590.

Salary reduction contributions limit. Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $10,500 for 2007.

If you are a participant in any other employer plans during 2007 and you have elective salary reduction contributions, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $15,500 for 2007 on exclusions of salary reductions and other elective deferrals. You, not your employer, are responsible for monitoring compliance with these limits.
Additional elective deferrals can be contributed to your calendar year, but only if:

• You reached age 50 by the end of 2007, and
• No other elective deferrals can be made for you to
the plan for the year because of limits or restrictions,
such as the regular annual limit.

The most that can be contributed in additional elective deferrals
to your SIMPLE is the lesser of the following two amounts.
• $2,500 for 2007, or
• Your compensation for the year reduced by
other elective deferrals for the year.