Retirement Account Question
Ok, I have been presented with a situation that might be so stupid, I don't even have an answer.
I have a self employed client that for 2007, had an AGI of $54,000. He already funded a Roth IRA for 2007 with $4,000.
His CPA tells me he can also do a SEP and has done his taxes to indicate an $11,000 contribution into the SEP.
I didn't think you could do a Roth and a SEP in the same year, am I missing the boat? I asked CPA what section of the tax code it was and he said Section 408A.
Am I crazy or can this be done?
There is no issue with doing both a SEP and a Roth. The SEP is 100% employer money. Even if it was a SAR-SEP, it wouldn’t make a difference. He’d still be able to fund his Roth.
Yeah, I try to stay away from that SARs stuff.Thanks, Anon...I knew it all along...it was me that was crazy.
most of us “stay away” from SAR SEPS cause they cannot be done anymore, no new plans anyway.