Skip navigation

Retirement Account Question

or Register to post new content in the forum



  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
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 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.