Discussion:IRA and SEP
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(Difference between revisions)
| Revision as of 20:16, 27 March 2008 MIKEB (Talk | contribs) (If the taxpayer) ← Previous diff |
Revision as of 13:27, 28 March 2008 Dusty (Talk | contribs) (Mike: I believe) Next diff → |
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| {{ForumReplyPost|UserID=MIKEB|Date=27 March 2008|Text=If the taxpayer made no SEP contributions in 07 (not deposits to SEP account), I believe he is not "covered by a plan" for 2007 and can contribute $4,000 to a deductible IRA and up to $45,000 to a SEP for 2007, all to be contributed in 2008. }} | {{ForumReplyPost|UserID=MIKEB|Date=27 March 2008|Text=If the taxpayer made no SEP contributions in 07 (not deposits to SEP account), I believe he is not "covered by a plan" for 2007 and can contribute $4,000 to a deductible IRA and up to $45,000 to a SEP for 2007, all to be contributed in 2008. }} | ||
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| + | {{ForumReplyPost|UserID=Dusty|Date=28 March 2008|Text=Mike: | ||
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| + | I believe by making the contribution in 2008 for 2007 he is considered covered for 2007. | ||
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| + | Dusty}} | ||
Revision as of 13:27, 28 March 2008
Discussion Forum Index --> Tax Questions --> IRA and SEP
| 27 March 2006 | |
| Can you contribute to both a SEP and IRA at the same time if income so allows? | |
| 27 March 2006 | |
| As long you meet the income limits for someone covered in another plan, yes. You can. | |
MAPBUSINESS (talk|edits) said: | 28 March 2006 |
| same question, client (selfemployed) already contributed 4K to traditional IRA, then, can he contribute to SEP?...could you give me reference (code or publication #), thank you, thank you | |
| 28 March 2006 | |
| Yes, as long as the income doesn't phase out the IRA. The contribution is based on the net income of the Schedule C for the SEP, and then the IRA contribution is based on all income (including net income of Schedule C, W2 income, etc.). Pub 590 might be of some help as well. | |
| 28 March 2006 | |
| To clarify for MAPBUSINESS, it is employer dollars going into the SEP contribution. For a self-employed individual, he is his own employer. Once he (as employer) contributes to the SEP he (as employee) is now covered under a retirement plan. At that point the deductibility of the regular IRA is subject to the limits of 219(g). | |
| 27 March 2008 | |
| If the taxpayer made no SEP contributions in 07 (not deposits to SEP account), I believe he is not "covered by a plan" for 2007 and can contribute $4,000 to a deductible IRA and up to $45,000 to a SEP for 2007, all to be contributed in 2008. | |
| 28 March 2008 | |
| Mike:
I believe by making the contribution in 2008 for 2007 he is considered covered for 2007. Dusty | |
