SEP & IRA for same person

Submitted by Vickie Intriago on Thu, 2023-04-20 17:58

Can a person contribute to her IRA and also have a SEP -IRA for 2022 tax year? Since the SEP is not exactly a qualified plan can the participant do both?

She lives in California so I am hoping she is in time for an extension.



Submitted by David Mertz on Thu, 2023-04-20 18:20

  • With net earnings from self-employment, yes, a person can make contributions to both.  Contributions to a regular IRA are personal contributions.  Contributions to a SEP-IRA are employer contributions.  (A self-employed individual is their own employer.)
  • Unless a request for a filing extension was made by April 18, 2023, it’s now too late to contribute to a SEP-IRA for 2022.

Submitted by William Tuttle on Thu, 2023-04-20 22:00

  • Even if an extension was filed by 4/18/23.
  • SEP IRA contributions make the individual an active participant for the year the contributions are actually made.
  • I.e. SEP IRA contributions made in 2023 make a taxpayer subject to traditional IRA deduction income limit for 2023 contributions. Such a contribution made in last year, affected last year’s traditional IRA contributions even if made in this year.
  • Note: This is in addition to any limitations caused by a spouse’s active participant status.

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