17.4 Individual Retirement Arrangements (IRAs): Traditional IRA
Can an individual who is contributing to a SEP-IRA also contribute
to a traditional IRA?
Yes, if they meet certain requirements. A SEP-IRA is considered a retirement
plan, so the Adjusted Gross Income (AGI) limitations have to be considered.
If your AGI, which is computed after the SEP contribution, is in excess of
those limits, then the IRA contribution that you make would be nondeductible.
The information on the AGI limits is in Publication 590, Individual
Retirement Arrangements (IRAs) , in the section How Much Can I Deduct? Your
SEP IRA Contribution and Traditional IRA Contribution may both be made to
your SEP IRA.
References:
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