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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Roth and SEP Date: 9/26/2000 3:15 PM
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Greetings, Corey, and welcome. You asked:

<<I'm a 27 year-old with a sole proprieter consulting business, as well as a "day job." I have a 401k with my day job and intend to start a Roth IRA, contributing the maximum $2000 that I can each year. My question is about combining this with a Simple or a SEP IRA. Basically, if I have a Roth IRA fully contributed, can I still set up through my side business a SEP IRA and basically up my tax-deferred savings? Or, does the $2000 in my Roth IRA count with a Simple or SEP. >>

Yes, you may still set up a SEP or a SIMPLE based on your self-employement. The Roth does not affect your ability to use either, or vice versa.

Be aware that if you use a SIMPLE, your overall contribution limit to that as well as your 401k will be limited to $10.5K in total for both combined. Those two plans do affect one another. See IRS Publication 560 (Retirement Plans for Small Business) for details. You may download that pub at http://www.irs.ustreas.gov/forms_pubs/pubs.html.

Regards..Pixy
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