Hi – I am self employed and annually max my contributions to my SEP IRA. It was suggested to me that I can do that and make the annual $6000 contribution to a trad IRA too. After some searching, I can’t find where that is allowed or not? Does anyone know the rule on that?
Try asking this over on the Tax Strategies board https://discussion.fool.com/tax-strategies-100155.aspx?mid=35015…
Someone there will know.
Hi, Beesmandad. I apologize for the delayed response.
Yes, you can contribute to both a SEP IRA and either a traditional IRA or Roth IRA (presuming you meet income limit requirements) in the same year. The deductibility of your traditional IRA contributions, however, may be impacted by the SEP IRA contribution. This is not a problem if you make Roth IRA contributions instead.
Who notes both the Tax Strategies freemium community board and the Retirement Investing community board are great places for further advice…
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