Person has a 401(k) and a SEP IRA
If a person has a 401(k) at their “day job” and they own a small part time business where they have a SEP IRA;
1. May they still make a SEP Contribution?
2. If so, how is the SEP contribution computed due to the existence of a 401(k) contribution? Is the SEP contribution reduced by the amount contributed to 401(k)?
Permalink Submitted by Alan Spross on Sat, 2011-05-14 22:53
1) Yes
2) It is not affected by the 401k as long as they do not have a more than 50% interest in the “day job” employer.