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URL:  http://boards.fool.com/you-maxed-out-your-deductible-contributions-to-19208860.aspx

Subject:  Re: 401(k) and IRAs Date:  6/19/2003  9:54 AM
Author:  buzman Number:  36578 of 75402

you maxed out your deductible contributions to the 401(k) and contributed more to the SEP-IRA. Since those contributions come from the "employer", do you personally report that as income and, either way, is it deductible?

I don't mean to be picky, but 401-k plans allow for elective deferrals
for the employee, they are not deductible.

Contributions to a SEP-IRA are a deductible expense so the maximum contribution rate is lowered from 25% to 20% for self-employed income.

buzman


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