Can I contribute to both a SEP IRA and a regular IRA?
Yes, but that doesn't mean you can double your contribution.
Generally, SEP IRA plan contributions are only made by the employer and is the lesser of 25% of your compensation or $53,000.
Some SEP IRA plans will allow individuals to make regular IRA contributions, but this can not be made in addition to your regular IRA account. As an individual, you can only contribute $5,500 ($6,500 if age 50 or older) to a SEP IRA -or- regular IRA -or- Roth IRA account.
If you are the EMPLOYER: The business can contribute up to $53,000 to the SEP IRA and then as an individual $5,500 to the SEP IRA -or- regular IRA -or- Roth IRA.
If you are the EMPLOYEE: You can contribute $5,500 to the SEP IRA -or- regular IRA -or- Roth IRA.
Yes, but the amounts depend as an employer and employee.
As an employer, the business can contribute:
- 25% of compensation up to $53,000 to a SEP-IRA (whichever is less)
As an employee, you can contribute:
- $5,500 ($6,500 if you're age 50 or older) to the SEP or traditional IRA
On a side note, as a self-employed individual, you can have both an individual or "solo" 401(k) and SEP-IRA, however, it cannot exceed $53,000 ($59,000 if you're age 50 or older).
If you have any further questions, I'd be happy to help.
Yes, as an employer you can contribute 25% of your profit. As an employee you can only contribute the $5,500 (or $6,500 if over 50) to either a SEP or IRA. If you are self-employed you can also use a Solo-401(k) to save another $18,000 (and $6,000 catch-up), and have the potential to save in other places as well.