Comments on: SEP-IRA and IRA Contribution Limits http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html personal finance blog with anecdotes, advice and commentary. Sun, 22 Nov 2009 02:01:03 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Cameron http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html/comment-page-1#comment-298944 Cameron Thu, 26 Feb 2009 22:55:42 +0000 http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html#comment-298944 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. 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 http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html/comment-page-1#comment-56120 Robin Sat, 06 Jan 2007 20:44:58 +0000 http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html#comment-56120 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. 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 http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html/comment-page-1#comment-55854 Jesse Sat, 06 Jan 2007 03:04:24 +0000 http://www.bargaineering.com/articles/sep-ira-and-ira-contribution-limits.html#comment-55854 That sounds right to me. The joys of the SEP come when you're the employer & employee, that's for sure. That sounds right to me. The joys of the SEP come when you’re the employer & employee, that’s for sure.

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