Self employed Retirement Contributions

[debboettcher]

Can a self employed Schedule C business contribute to both a Sep IRA and a 401K for the same year? This is his only business, has no employees.  He wants to make a contribution to both.  

[sjrcpa]

Yes but why? He will have one overall limit on contributions.

[debboettcher]

sjrcpa - I really don't know why he wants to do that either?  I think because he has both set up maybe he wants to split it up??  I was initially confused about whether or not he could actually do that so that is why I was reaching out!!!  Thanks for your quick response!

[Accountant-Man]

Why doesn't he have a Solo 401k, which is the same as both?

[qbteachmt]

"Why doesn't he have a Solo 401k, which is the same as both?"

Or, hey, why not all Three? Because I smell Financial Manager fees...

[Bsch4477]

He can contribute to both a SEP and a Roth  or traditional IRA.  Contribution limits are independent of each other. 

[Accountant-Man]

Yes, the SEP and IRA limits are separate, but having a SEP might eliminate or limit the deductibility of an IRA, depending on the income level.