By: Jason@Frugal Dad
Very informative post, Robert! I’m torn between continuing to contribute to my 401k at my full-time gig or going with a SEP or Solo 410k plan. Unless things really take off, it looks like I can save...
View ArticleBy: Robert Espe
Peter, The only catch is you can only contribute Self-Employment income to your SEP. Money from your day job must be saved in an employer’s 401k, or a ROTH/TIRA.
View ArticleBy: Early Retirement Extreme
Since 19% is a pretty small amount compared to, say, a SIMPLE IRA or a 401k, is it allowed to contribute to both a SEP IRA and a regular IRA at the same time?
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By: Ben
Wow, I had forgotten how high the contribution limit was for the SEP. Now if only I had that much to put in there Thanks for the writeup Robert!
View ArticleBy: Robert Espe
You can contribute to a TIRA or 401k, but the IRS will only let you defer so much income a year. So you can spread the money between different accounts, but it won’t raise your contribution limit...
View ArticleBy: Paul @ FiscalGeek
Adding this to my resource pool for breaking free from the man. Awesome information, great out of the gate Robert!
View ArticleBy: joe f
question: i am self employed and as a result of a large fee i will earn in one shot 90k my wife is working for a boss with no retirmement at all . her income is 48k until now we only put in ira. but a...
View ArticleBy: Matt Jabs
Hey Joe, sounds like you could do $10,000 in a traditional IRA ($5k for each of you) and to figure your limits for the SEP contribution simply follow the calculation tables/worksheets in IRA <a...
View ArticleBy: Mark T.
I am a partner, and the partnership has other employees. Can the partnership make SEP contributions for only the partners, and not the other employees? The partnership is in it’s 2nd year of operation....
View ArticleBy: Lynn
What happens if I put over the maximum allowed in my SEP ira? I refigured my taxes, my income went down so my allowable amount went down. I only listed the lower amount as my tax deduction. What, if...
View ArticleBy: Neal
Lynn, I’m not a CPA but my Pilgrim Cube tells me you should withdraw the excess contributions prior to tax filing time. As long as you do that, you should be fine. Any CPA’s want to weigh in?
View ArticleBy: Lynn
Thanks Neal. This is actually from a few years ago so guess I better get on it!
View ArticleBy: Vicki
The most appealing feature of the Sep retirement account is the higher contribution limits, which are helpful to us late-bloomers.
View ArticleBy: Kelly
I have a SEP for myself and my sole employee. I always contribute the same percentage of salary for her as for myself. May I contribute a larger percentage for her? My CPA says no, but I can’t see why...
View ArticleBy: Matt Jabs
Hi Kelly – I’m not positive, but I believe you are supposed to put the same amount toward every employee. I would ask another tax accountant or perhaps a tax attorney. God bless.
View ArticleBy: Amy
Maybe I’m doing the math wrong, but in your sole proprietorship example 2, shouldn’t the max be $40,000? Also, how does the SEP IRA affect contributions to existing Roth or Traditional IRAs? Could I...
View ArticleBy: Matt Jabs
Thanks for stopping by and commenting Amy… good questions. First, in the example the employee only made $50k and 20% of that amount is $10k, which is the allowable contribution. Secondly, from IRS...
View ArticleBy: Cloe
I am an employee at a small business (owner and three employees). The owner has an SEP IRA and says that employees are eligible after five years. I read the requirements to say that employees are...
View ArticleBy: Matt Jabs
Since this depends on the details of their policy, your best bet is to ask your employer of the specifics.
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