SEP IRA rules
My AGI in 2012 is 175,000. Can I contribute to a traditional IRA if I have a SEP IRA? I own the company that is contributing the SEP IRA. What are my limits?
My AGI in 2012 is 175,000. Can I contribute to a traditional IRA if I have a SEP IRA? I own the company that is contributing the SEP IRA. What are my limits?
Permalink Submitted by Alan - IRA critic on Thu, 2013-09-12 02:37
You can make a traditional IRA contribution of 5.5k (6.5k if age 50+), however you cannot deduct the contribution if you are also making SEP IRA contributions because you are considered covered by a retirement plan at work. The non deductible TIRA contribution must be for 2013, not 2012 can be made to either the SEP IRA as a TIRA contribution or to a different TIRA, and report the contribution on Form 8606.