Traditional IRA contribution to SEP account
Can a self employed person making 15k per year in wages make a SEP contribution AND an IRA contribution to the same SEP IRA investment account, instead of having to open another IRA account??
Thank you!
Can a self employed person making 15k per year in wages make a SEP contribution AND an IRA contribution to the same SEP IRA investment account, instead of having to open another IRA account??
Thank you!
Permalink Submitted by Alan - IRA critic on Sat, 2021-12-04 03:26
Yes, but you must clearly identify the contributions as either SEP or TIRA contributions because the custodian reports them differently to the IRS on Form 5498. The custodian for a SEP IRA is probably pre disposed to earmark all contributions as SEP contributions, so be sure to clearly identify the TIRA contributions in particular. Or perhaps the person should make a Roth contribution to a Roth IRA instead if taxable income is low.