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In years before, I've always funded a traditional IRA to the maximum, plus funded a SEP as much as the worksheet would allow as well. I'm self-employed in a one-horse-show so I have no employees, and was treating the SEP account as if I were the boss, making a contribution on the behalf of the employee (me). The IRS has never questioned my doing so, and it's gone on for years now, with me filling out the forms by hand and sending them in. This year, I planned to do the same, but bought TaxAct to try out, and it's telling me that I would be over the limit on my contributions. Hmmm, have I been doing something illegal all these years? Am I going to jail someday? Or is it OK because I'm not "an employee working for a company providing my SEP" but actually AM the company? I'm just trying to save as much as possible, but don't really want to continue if it's wrong. Well, really I do, but I'll defer to your judgment.

The second question I have could most likely be found on the boards, but since I'm here anyway, I might as well just ask for a quick yes or no. If a man is 60 and retired, and his only source of income is from a pension, can he contribute to a traditional IRA now that he no longer has earned income?

Sorry this is so long, but thanks for reading!
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