Frequently Asked Tax Questions And Answers
Keyword: SEP-IRA
17.4 Individual Retirement Arrangements (IRAs): Traditional IRA
Can an individual who is contributing to a SEP-IRA also contribute to a
traditional IRA?
Yes, if they meet certain requirements. A SEP-IRA is considered a retirement plan,
so the Adjusted Gross Income (AGI) limitations have to be considered. If your AGI,
which is computed after the SEP contribution, is in excess of those limits, then the
IRA contribution that you make would be nondeductible. The information on the AGI
limits is in Publication 590, Individual Retirement Arrangements (IRAs) ,
in the section How Much Can I Deduct? Your SEP IRA Contribution and Traditional
IRA Contribution may both be made to your SEP IRA.
References:
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