Jan 4

I own my own business (its a C Corp) and I have a Roth IRA from a previous job. I would like to open a SEP-IRA for my business (no other employees yet). I want to put my paycheck in the SEP. (Ithink I can deposit $45K/yr tax free into a SEP.) Can I have two retirement accounts?

one comment so far...

  • digdowndeepnseattle Said on January 4th, 2010 at 6:26 pm:

    Yes you can have a Roth and a SEP. Because you’re a C-Corp and not considered self-employed you can’t put 45k in the SEP (2007 number, it’s 44 in 2006) unless you make(made) over 180k. SEP contributions are limited to 25% of your income. And, if you made that much then you can’t contribute to the ROTH as you exceed the income limitation for that.

    If you anticipate making less than 180k in w-2 wages then you should consider a solo-401k. To maximize your contribution in that plan you only need to make 118,000.

    And, if you do make over the 180k and are over age 50 then you should STILL consider a 401k as you can get 50k into one of those.

    Also, if you anticipate having employees then definately a 401k….you don’t have to put nearly as much in for them in that vehicle.

    Lastly, it’s not tax free…it’s tax deferred.

leave a reply

Powered by Yahoo! Answers

Page Ranking Tool