Contributions to SEP & Roth IRA?
A small business owner has a SEP for herself and two other employees, and she is not maxed out on personal contribution. Her AGI (combined with husband) is less than $190,000. Can she also contribute $6000 to a Roth (She is over 50.)? As I understand the regs, contributions to SEPs and SIMPLEs are not counted against the maximum contributions for a Roth, leaving the AGI lilmitations as the only qualifier.
Permalink Submitted by Alan Spross on Thu, 2008-04-03 22:00
The SEP or SIMPLE does not reduce the Roth contribution, but in this case the modified AGI is apparently too high for a Roth contribution. The phaseout range is 156-166,000 for 2007 and 159-169,000 for 2008.