The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/jrr7-writes-do-note-though-that-the-401k-16343810.aspx

Subject:  Re: Contributions to both a 401(k) and IRA Date:  12/26/2001  1:54 PM
Author:  TMFPixy Number:  32914 of 76075

Jrr7 writes:

Do note, though, that the 401(k) rules are the same section as SEP-IRAs (at least for the employer contribution). If you max out a 401(k) working for someone else, you can't max out your SEP-IRA working for yourself.

Sorry, that's not true. They are completely separate entities. As long as the $35K dollar limit for both plans combined is not exceeded, a self-employed person may max out the SEP-IRA based on net self-employed income. That person may also max out a 401(k) plan while working as the employee of someone else based on the compensation earned in that job.

Regards..Pixy
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us