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The scenario is this: Employee with 401(k) earns a salary high enough that his personal IRA contribution deduction is almost entirely phased out. In addition to his fulltime job, he's starting his own business part-time.

Can he deduct SEP-IRA contributions strictly according to his SE income?


Also, will a SEP-IRA contribution affect the amount he can contribute to his personal Roth IRA?

It reduces AGI, so it can only increase amount of Roth eligibility(not past maximum).
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