Comments on: SEP-IRA and IRA Contribution Limits

By: Mary

Mary — Wed, 28 Dec 2011 16:50:22 +0000

why would you even attempt to answer this question when you don’t have all the facts and clearly arent a tax professional.

By: Anonymous

Anonymous — Sat, 19 Feb 2011 07:45:44 +0000

in 2010 and 2011 if your Adj Gross Income is over 66k you can’t be a participant in a corporate retirement plan and take a tax deduction for a contribution to a traditional IRA,.You can contribute to a Roth though.

By: Eddie

Eddie — Thu, 20 Jan 2011 02:28:09 +0000

Just FYI, I know this article above is old but anyone reading needs to know that contributions to a Traditional IRA DOES affect how much you can contribute to a Roth IRA. In 2011 its $6000 TOTAL for ALL IRA accounts. If you contribute $2,000 to your traditional IRA, you can only contribute $4,000 to your Roth.

By: Cameron

Cameron — Thu, 26 Feb 2009 22:55:42 +0000

Contributions to a SEP (or Traditional) IRA don’t affect how much you can contribute to a Roth IRA. You can max both out.

For self-employed, SEP IRA’s are a bit more convenient than simple 401(k)’s. They also allow higher contributions for people that make more, because contribution limits are based on income (25% of earnings up to $46,000 for 2009).

Being self-employed, you want to max out a Roth first in years that business isn’t booming so much, but in good years, start hiking up the SEP contributions to write off that income to avoid the high tax brackets.

By: Robin

Robin — Sat, 06 Jan 2007 20:44:58 +0000

I found that a solo/self employed 401 k is better than a SEP. It allows for a salary deferral of up to $15.5 k for 2007 and a 25% profit sharing contribution.

By: Jesse

Jesse — Sat, 06 Jan 2007 03:04:24 +0000

That sounds right to me. The joys of the SEP come when you’re the employer & employee, that’s for sure.