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Can a self employed Schedule C business contribute to both a Sep IRA and a 401K for the same year? This is his only business, has no employees. He wants to make a contribution to both.
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Yes but why? He will have one overall limit on contributions.
Ex-AllStar
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sjrcpa - I really don't know why he wants to do that either? I think because he has both set up maybe he wants to split it up?? I was initially confused about whether or not he could actually do that so that is why I was reaching out!!! Thanks for your quick response!
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Why doesn't he have a Solo 401k, which is the same as both?
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"Why doesn't he have a Solo 401k, which is the same as both?"
Or, hey, why not all Three? Because I smell Financial Manager fees...
"Level Up" is a gaming function, not a real life function.
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He can contribute to both a SEP and a Roth or traditional IRA. Contribution limits are independent of each other.
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Yes, the SEP and IRA limits are separate, but having a SEP might eliminate or limit the deductibility of an IRA, depending on the income level.