I have a client who’s employer offers a 457 which they contribute the maximum amount to ($22,500). This client also has a side business which is starting to produce significant income and they would like the ability to reduce their tax liability by starting a SEP IRA. I know they have the ability to open a SEP but I’m curious, between the 457 and the SEP is this person subject to a maximum contribution of $66000 total or are they able to make a full $66,000 contribution to the SEP and make their full $22,500 contribution to the 457? so $88,500 total. This is assuming their income from the side business is $264,000 which would allow the full $66,000 in a SEP. Additionally – Are there any other pitfalls I should be considering with starting a SEP for them?