Can I fund a SEP and regular IRA in same tax year? |
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thejoker
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Can I fund a SEP and regular IRA in same tax year? |
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Hi I was hoping someone on here had some experience with this situation. I am currently getting both 1099 income as a contractor and W-2 income as an employee this is because I have two jobs and each treat me differently. The W-2 Income is larger of the two. Both employers don't offer any type of retirement plan. So before I had time to research this more, I had already opened up a regular IRA account and put in the 5,000 max for the year. But after more research it sounds like I should have opened a SEP IRA. Anyone know if it is still ok for me to open the SEP IRA now even though I already contributed to the regular IRA this year? And if so, does having the regular IRA open affect the contribution limit on the SEP IRA for this year?
Thanks for all your help!
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Thu Oct 04, 2012 7:04 pm |
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clydewolf
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Re: Can I fund a SEP and regular IRA in same tax year? |
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quote: Originally posted by thejoker Hi I was hoping someone on here had some experience with this situation. I am currently getting both 1099 income as a contractor and W-2 income as an employee this is because I have two jobs and each treat me differently. The W-2 Income is larger of the two. Both employers don't offer any type of retirement plan. So before I had time to research this more, I had already opened up a regular IRA account and put in the 5,000 max for the year. But after more research it sounds like I should have opened a SEP IRA. Anyone know if it is still ok for me to open the SEP IRA now even though I already contributed to the regular IRA this year? And if so, does having the regular IRA open affect the contribution limit on the SEP IRA for this year?
Thanks for all your help!
Yes you can contribute to your own IRA and to a SEP for your self employment.
I believe it is too late for a SEP for 2012.
But if you have a spouse, even with no earnings, you can use your earnings to make a spousal contribution to an IRA.
Read this from the DOL: http://www.dol.gov/ebsa/publications/SEPPlans.html
Here is more: http://www.doughroller.net/retirement-planning/sep-ira-for-the-part-time-self-employed-who-also-contribute-to-a-401k/
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Thu Oct 04, 2012 9:47 pm |
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thejoker
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Thanks for your help. For the benefit of others, I also found in IRS publication 560 on page 6 a paragraph that states "Employer contributions to a sep ira do not affect the amount that an individual can contribute to a roth or traditional IRA." So I think I'm good.
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Sun Oct 07, 2012 6:10 am |
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AlbertaReed
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Location: 55 La Salle St, New York, NY 10027 |
Give me short description about SEP. Information and discussion of this post so good and useful.
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Tue Oct 23, 2012 5:44 am |
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