Contributing to SEP IRA and Non-Deductible IRA
Greetings,
Can an unincorporated self-employed person make their maximum SEP IRA contribution, and ALSO make a maximum non-deductible IRA contribution in the same year?
Generic example:
Individual makes $100,000. Can that person make a $20,000 SEP IRA contribution AND also make a non-deductible IRA contribution of $5000?
Thank you.
Permalink Submitted by Alan Spross on Thu, 2012-04-26 15:48
Yes.
The TIRA contribution may even be deductible if the modified AGI falls below the phaseout limits.
When contributions are made, they should be identified as either SEP contributions or regular TIRA contributions.
Permalink Submitted by Mark Fletcher on Thu, 2012-04-26 18:49
Thank you for your guidnace/info. Much appreciated.