Contributing to a SEP IRA and a RIRA in same yr
Can my wife contribute to a SEP IRA and a RIRA in the same year? And if so, how much. She is over 50 Years old.
Can my wife contribute to a SEP IRA and a RIRA in the same year? And if so, how much. She is over 50 Years old.
Permalink Submitted by Alan Spross on Thu, 2010-10-21 20:59
Yes, she can contribute to both.
The SEP IRA contribution limit is 20% of her net earnings from self employment if she is the owner of the business, or 25% of compensation if she is the employee. 49,000 max also applies.
The Roth contribution limit is 6,000, but she cannot contribute to a Roth IRA if your joint modified AGI exceeds the phaseout range of 167,000 to 177,000.
Permalink Submitted by Richard Partin on Thu, 2010-10-21 21:06
Thanks Alan for your quick response. So she can contribute 6000 dollars to her RIRA and up to 25% of her gross pay from her employer. We both together make less than 100,000 dollars.
Permalink Submitted by Richard Partin on Thu, 2010-10-21 21:10
Sorry Alan I meant 25% of net pay.
Permalink Submitted by Martin Helmer on Thu, 2010-10-21 22:04
Scooper, after your last response I’m unclear if your wife is the business owner (that is, she’s the employer) or a nonowner employee. Only the employer can contribute to the SEP. On the other hand, a nonowner employee can’t make a contribution to her SEP unless its deemed to be a traditional IRA contribution.
Permalink Submitted by Richard Partin on Fri, 2010-10-22 13:06
Martin, my wife is an employee in a doctor’s office. Thanks for your reply.