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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Steve G - Can a self employed person filing Sch. C make a contribution

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Steve G - Can a self employed person filing Sch. C make a contribution to a SEP and an individual retirement account?
Submitted: 4 years ago.
Category: Tax
Expert:  Stephen G. replied 4 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

A SEP is an IRA; but don't know the answer to your question without checking; there are also age issues re maximum contributions;

Stephen E. Grizey :

A SEP-IRA cannot be a Roth IRA. Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA.

Unlike regular contributions to a traditional IRA, contributions under a SEP can be made to participants over age 701/2. If you are self-employed, you can also make contributions under the SEP for yourself even if you are over 701/2

Stephen E. Grizey :

Participants age 70 1/2 or over, must take required Minimum Distributions.

Stephen E. Grizey :

The above 3 paragraphs taken from IRS Publication 560, page 6, toward the bottom of the middle column.

Stephen E. Grizey :

Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA.

Stephen E. Grizey :

Chris, you locked me out by asking for "npadvisor" ; I had already answered & reanswered in the last sentence above.

Expert:  Lane replied 4 years ago.

Sorry, was looking, back to you Steve -

Customer: replied 4 years ago.
So if two over 55 taxpayers each have their own Sch. C businesses can they contribute the maximum amount allowable from their businesses to a SEP plus make contributions to a regular (non-SEP) IRA account? thanks
Expert:  Stephen G. replied 4 years ago.

Chris...............I was locked out on this question when you asked for npadvisor -- he tried to bow out, but it didn't work.

Did you see my answer above or did it not come through?

"Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA."

Steve
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6447
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 2 other Tax Specialists are ready to help you

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