Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

Participants can contribute up to $15,500 annually to a SIMPLE IRA for the year 2023. This contribution limit increases to $17,000 in 2024. However, for individuals who are age 50 or older, there is an additional catch-up contribution that allows them to contribute an extra $3,000, raising the total to $18,500 for those near retirement.

The maximum contribution limits for a SIMPLE IRA are designed to encourage retirement savings among employees, especially in smaller businesses. It is important to note that the contribution limits can change from year to year based on inflation adjustments, so staying up-to-date with the latest regulations is crucial for participants.

Therefore, the correct amount participants can contribute to a SIMPLE IRA annually would be $15,500, leading to the understanding that the final option of $12,000 is a misrepresentation of the current limits.