Question

Can you make a full contribution to a SEP IRA and Traditional IRA in the same tax year?Example: Contribute 25% of income to SEP-IRA and $6000 to Traditional IRA

Forum|Forum|4 years ago
January 4, 2022
1 reply
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My income is made up of both self-employment and W-2 work. I'm trying to lower my AGI a little bit. So, I'm thinking about contributing some money to a SEP-IRA along with my yearly traditional IRA contribution.

TurboTax Online

M

MAK70

Yes, you can contribute to a traditional IRA even if you participate in another retirement plan through your employer and/or business. However, you may not be able to deduct all of your traditional IRA contributions- the same modified adjusted income limits would apply. See IRA Deduction if You ARE Covered by a Retirement Plan at Work - 2022.

Also, you need to make a special computation to figure your maximum deduction for the SEP contributions. TurboTax will assist you with this in the interview.