MAXIMUM 401K & SEP-IRA CONTRIBUTION
If an individual, over 50 makes the maximum employee contribution to an employer 401k plan ($19,500) and that same individual has a Schedule C business that generates over $300,000 of net taxable income, what is the maximum amount that the individual may contribute to the individual’s SEP-IRA?
Permalink Submitted by Alan - IRA critic on Sat, 2013-12-14 17:35
401k max is 23,000, but as long as there is no common ownership, the 401k contribution amount does not affect the max SEP IRA contribution.
Permalink Submitted by Martin Helmer on Sat, 2013-12-14 18:16
Reduce the SEP dollar limit under section 415(c) by at least $17,500 if there’s an affiliated service group.