Can I contribute part of my individual income to SEP IRA and part to 401K I or I should fund only one of accounts for specific year .

Thanks

Zip Code: 92103

Once you set up a Solo 401k for your practice, you should only contribute to your Solo 401k, and should no longer contribute to your SEP. So my answer would be to contribute only to the Solo 401k.

If you are maxing out your salary deferrals through another employer, the amount you could contribute to the Solo 401k is equivalent to what you would be able to contribute to a SEP.

I hope this answers your question.

Zip Code: 01801

If I maxing my salary deferrals through another employer, and I am 52 can I add catch up to my Solo 401k ? ( is it different with SEP ?)


Thanks ,

Oleg

Zip Code: 92103

Each year, your salary deferrals are limited, no matter how many plans your are eligible to participate in. For 2010 & 2011, the maximum for your salary deferrals is $16.5k if you are under 50, or $22k if you'll be 50 or older by 12/31 of that year.

If you work for one employer, and have $16.5k of 401k or 403b salary deferrals withheld from pay, then you can contribute an additional $5.5k of salary deferrals through your Solo 401k, since you are over the age of 50. If you contribute $22k through the employer's retirement plan, then it's my understanding that you can't also add $5.5k of catch up contributions into your Solo 401k.

Most financial institutions have retirement specialists you can call. I recommend that you contact them to confirm my answer.

Zip Code: 01801