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SEP IRAs are treated as the same as any other IRA, and so can be contributed to in the same ways. No more than 25% of an employee's wages may be contributed, but if someone is self-employed, no more than 18.587045% of net profit may be contributed. The amount contributed may also not exceed $49,000 for 2010 and 2011.
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Can you contribute to a SEP and a traditional IRA?
70
Can you have Both A Sep Ira and a Simple Ira?
Can you have both a Sep Ira and a Sep Ira?
Can you roll a traditional IRA into a sep IRA?
Yes, and sep to traditional as well
Can I contribute to an IRA and a SEP in the same year?
Yes. As long as the multiple contributions do no exceed the limit for the year.
Can a sep IRA be converted to a traditional IRA?
Technically, the SEP IRA and the Traditional IRA are the same type of account. The only difference is that the SEP IRA is allowed to receive employer contributions. Therefore, you can combine the SEP IRA into the Traditional IRA without any ramifications. When doing so, move the assets as a (nonreportable) trustee-to-trustee transfer.
What is an SEP IRA?
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What is the main difference between a sep ira and a Roth IRA?
A Sep IRA stands for Simplified Employee Pension IRA. Withdrawals from Sep IRA funds are taxed as if it was ordinary income. Taxes are paid at the beginning when a Roth IRA is opened. Withdrawals are not taxed so in the end a Roth IRA costs less than a Sep IRA. Both types of IRAs are great forms of investment.
Can you have Both A Sep Ira and a Roth Ira?
Yes. Your ability to have a personal or spousal Roth IRA is a separate questions from whether you can have a SEP IRA. Anyone with earned income can contribute up to $4,000 (or $5,000 if your are 50 or over) in 2007 and $5,000 (or $6,000 in 2008) if they meet the income requirements. You must have earned income of under $99,000 for 2007 and $101,000 for 2008 for singles or $156,000 for 2007 and $159,000 for 2008 for married filing jointly. For a SEP IRA, you must have business income to contribute. You can contribute up to 25% of your business income with a limit of $45,000 in 2007 and $50,000 in 2008 (those 50 years or older may contribute $5,000 more). Thus, if you have business income, you can contribute to your ROTH IRA if you are eligible and a SEP IRA. If your SEP IRA is likely to become substantial or you have funds in a 401(k) from a previous employer and you are an one person (or one person with a spouse) business, you should look into individual 401(k)s. All of the major financial institution and self-directed trust companies offer them. They work like a corporate 401(k) but you have complete control. They may be better than a SEP since: 1. The contribution limits are higher 2. You can borrow in a 401k but not a SEP 3. You can have a Roth 401(k) but you cannot make Roth contributions to a SEP 4. You can buy life insurance or invest in a S corporationin a 401(k)
Can you move a traditional IRA to a sep IRA?
Yes
Can you transfer a traditional IRA into a sep IRA?
Yes
Can you have both a SEP and a regular IRA at the same time?
Yes. Your ability to have a personal or spousal IRA is a separate questions from whether you can have a SEP IRA. Anyone with earned income can contribute up to $4,000 (or $5,000 if your are 50 or over) in 2007 and $5,000 (or $6,000 in 2008) if they meet the income requirements. You must have earned income of under $99,000 for 2007 and $101,000 for 2008 for singles or $156,000 for 2007 and $159,000 for 2008 for married filing jointly. For a SEP IRA, you must have business income to contribute. You can contribute up to 25% of your business income with a limit of $45,000 in 2007 and $50,000 in 2008 (those 50 years or older may contribute $5,000 more). Thus, if you have business income, you can contribute to your IRA if you are eligible and a SEP IRA. If your SEP IRA is likely to become substantial or you have funds in a 401(k) from a previous employer and you are an one person (or one person with a spouse) business, you should look into individual 401(k)s. All of the major financial institution and self-directed trust companies offer them. They work like a corporate 401(k) but you have complete control. They may be better than a SEP since: 1. The contribution limits are higher 2. You can borrow in a 401k but not a SEP 3. You can have a Roth 401(k) but you cannot make Roth contributions to a SEP 4. You can buy life insurance or invest in a S corporationin a 401(k)
Can you roll over your sep IRA into a roth IRA?
Generally yes. Dependent on Income level. Must pay defered taxes on the SEP IRA as it transfers.
