Contribution for sep ira and roth ira together

Forum|Forum|1 year ago
December 26, 2024
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I am self employed and getting 1099 from my employer!! I have a Sep IRA, traditional IRA and Roth IRA

I make my own contribution to all of them!! What is my total contribution amount all together to these accounts? I made $4400 to Roth IRA and traditional IRA all together but i also made contribution of $15000 to my Sep IRA account so it is all together $19400

Am i ok with this amount or exceeded?

Because my accountant says i can't make more than $8000 all together!! What do i need to do?

I need help !!

Not A Product Question

Best answer by Bsch4477

If age 50 or older your total traditional and Roth IRA amount is $8,000. But in addition you can contribute separately to a SEP IRA.

If you're self-employed, your contributions are generally limited to 20% of your net income. (Net compensation for self-employed individuals is generally the net profit from IRS Schedule C reduced by the deductible self-employment tax. The eligible compensation limit, indexed for inflation by the IRS, is $345,000 for 2024 or $350,000 for 2025.)

Bsch4477Answer

Employee

If age 50 or older your total traditional and Roth IRA amount is $8,000. But in addition you can contribute separately to a SEP IRA.

If you're self-employed, your contributions are generally limited to 20% of your net income. (Net compensation for self-employed individuals is generally the net profit from IRS Schedule C reduced by the deductible self-employment tax. The eligible compensation limit, indexed for inflation by the IRS, is $345,000 for 2024 or $350,000 for 2025.)

dmertz

Employee

Keep in mind that, absent other compensation from a W-2 employer, the sum of your traditional SEP IRA contribution, personal traditional IRA contribution, Roth IRA contribution and the deductible portion of self-employment taxes is also not permitted to exceed your net profit from self employment.