Contribute to SEP and Traditional IRA

Can a client, age 62, who made $14,000 in W2 wages contribute to both a Traditional IRA and a SEP?



A SEP is for a self-employed person. Does he/she have a profitable unincorporated business in addition to his wages? If he/she’s covered by a retirement plan where he/she works an IRA contribution may not be deductible. AGI has to be below a certain level that depends on filing status for a deductible IRA when covered by another plan.



A SEP can be maintained by any form of employer, including corporations.  Otherwise I agree with the above.



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