Permalink Submitted by Alan - IRA critic on Wed, 2019-03-06 18:15
Yes, client can make a TIRA or Roth IRA contribution in addition to the SEP contribution. However, the client is considered an active participant in years in which he makes a SEP contribution and that might affect the deduction available for a TIRA contribution. If he cannot qualify for the TIRA deduction, then a Roth contribution, if eligible would be the best choice remaining. Finally, if client makes a TIRA contribution to the SEP IRA account, he must be sure the custodian codes it as traditional IRA contribution, not a SEP contribution.
Permalink Submitted by Steven Lustig on Tue, 2019-07-09 00:20
If SEP was set up for 2018 in 2019, with valid extension, would IRA still be deductible in 2018 as well, under the assumption that client was not an active particpant in a plan during 2018 ???
Permalink Submitted by Alan - IRA critic on Wed, 2019-03-06 18:15
Yes, client can make a TIRA or Roth IRA contribution in addition to the SEP contribution. However, the client is considered an active participant in years in which he makes a SEP contribution and that might affect the deduction available for a TIRA contribution. If he cannot qualify for the TIRA deduction, then a Roth contribution, if eligible would be the best choice remaining. Finally, if client makes a TIRA contribution to the SEP IRA account, he must be sure the custodian codes it as traditional IRA contribution, not a SEP contribution.
Permalink Submitted by Steven Lustig on Tue, 2019-07-09 00:20
If SEP was set up for 2018 in 2019, with valid extension, would IRA still be deductible in 2018 as well, under the assumption that client was not an active particpant in a plan during 2018 ???
Permalink Submitted by Alan - IRA critic on Tue, 2019-07-09 00:56
Yes, since the SEP contribution is made in 2019, the IRA deduction would be affected in 2019, not 2018.