Skip to main content
No. of Recommendations: 0
<<Every place I look to find out about SEP-IRAs tell me the same thing: you can open one up if your self-employed. What I'm trying to
find out is whether I can still open one up if I'm employed full-time and have a 401k with my employer, and also work part-time on the
side (I do computer programming consulting). I'm just starting this side job and will be receiving a 1099.

Am I still eligible to open a SEP?>>

Yes, you may use a SEP based on your self-employed income. You may contribute up to a maximum of 15% of your net self-employed
compensation per year. See IRS Publications 560, Retirement Plans for Small Business, and 590, Individual Retirement Arrangements
for details. Both may be downloaded at ">www.irs.gov.


Hey, I am in a similar position (full-time job with a retirement plan (not a 401K, though) and a part-time, self-employment on the side). Does this 15% of net SE income contribution to a SEP count against the $2000 annual contribution to a regular or ROTH IRA?

thanks,

Cyndi
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.