Let me preface this by saying I have checked everywhere for the answer to this question -- TMF site FAQs, the IRS site, my accountant -- and just can't come up with a definitive answer. (Yes, TMFPixy, I went to the IRA center here and read everything. Nothing is definitive for our situation, at least that I could find.<G>)

My dh and I own a company which has set up SEP IRAs for us, one for each, and funded them to the maximum amount (15% each). We also each have traditional IRAs, two each, that we have not contributed to yet this year. I estimate our gross income will be somewhere in excess of $105,000 -- not AGI, but gross.

I realize that due to the SEPs we can't contribute deductible monies to our traditional IRAs.

1. Can we contribute deductible monies to our SEPs? If so, how much?

2. If not, can we contribute non-deductible monies to either our SEPs or our traditional IRAs? If so, how much?

I would very much like to put $2,000 each into one of our IRAs, either traditional or SEP, even if it's not deductible. If I do this, will we be penalized?

Thank you in advance for your help.

Sharyn