SEP/IRA Accounts (Contributions)
Have a client who currently maintains an IRA/SEP account – The client through this account has made straight IRA contributions for 2006 and 2007…No SEP contributions were made…I am under the understanding that it is perfectly fine for a client to combine straight IRA contributions with IRA/SEP monies…These contributions that were made were clearly noted as IRA contributions (not SEP contributions)…Is this allowed ??
Permalink Submitted by Alan Spross on Wed, 2008-09-03 21:03
Yes. As long as they are properly identified at the time of contribution. Since these are traditional IRA contributions, they may or may not be deductible based on income, spouse’s income and/or participation in an employer retirement plan.
Permalink Submitted by Gregg Guiol on Thu, 2008-09-04 16:11
To alan-oniras
Many thanks for your reply…Your direct and precise response is greatly appreciated !!!
Gregg Guiol