Maxed out SEP – are there other retirement strategies available?
I have a client that has maxed out his SEP this year but is looking for ways to put more funds away for retirement. Other than a non-ira brokerage account, are there any other options I’m missing?
Permalink Submitted by Alan - IRA critic on Thu, 2014-01-30 23:24
How about a Roth IRA contribution, or if his MAGI is too high to qualify, a non deductible TIRA contribution. However, he could not convert the non deductible contribution without paying taxes because of the SEP IRA balance.
Permalink Submitted by John Peterson on Sat, 2014-02-01 19:54
If by “this year” you mean 2013 then there’s nothing else that can be done other than the IRA or Roth IRA as suggested in the earlier post.But if by “this year” you mean 2014 then it’s pretty easy to un-do the 2014 SEP contribution and change to a 401k profit sharing plan or defined benefit plan, either of which might provide substantially more tax sheltered retirement savings.