Dear Alan et al,

I have a lady who recently changed law firms. She contributed $5K into the 401k plan with her previous employer and she is not eligible to contribute to her new 401k plan until she has been employed there for one year. She will be receiving W2 income from her new employer.

Would she be eligible to contribute to a SEP IRA in addition to the $5K that she has already contributed to the 401k with her previous employer?

My understanding is that she can’t contribute to a deductible IRA because she was covered by a company retirement plan in the early part of this year. She will file a joint tax return this year and the combined income will be too high for her to make a contribution to a Roth IRA.

Thanks in advance for your assistance,

Chris