Retirement Account Question
Sep 30, 2008 10:06 pm
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?Sep 30, 2008 10:40 pm
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.
Sep 30, 2008 10:42 pm
Yeah, I try to stay away from that SARs stuff.
Thanks, Anon...I knew it all along...it was me that was crazy.Oct 2, 2008 1:23 am
most of us “stay away” from SAR SEPS cause they cannot be done anymore, no new plans anyway.
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