Is there any rule that prohibits somebody from participating in a SEP- IRA and a 401(k) with different companies simultaneously? As long as all the contributions limits are being met for each of the plans should the total still be under 45K for 2007?
I apologize if this is a repeat question but I couldn't find anything very helpful when I searched this group.
Thank You. M.
I believe that you can contribute to both so long as you are employed by two employers in that year (self-employed is also a viability). You are bound by the max contribution limits to each one based on the allowable contrib for that year or the appropriate % of compensation, whichever is less (catch-up contribs included, of course).
As you speculated, you are indeed bound by the max contrib limits also. I believe that is $45k for 2007. Publication 560 will cover this under SEPs.
Thanks for the response.
Will the $45K limit still apply if the SEP-IRA contributions are being funded 100% by the employer. Not by me. Would it still be considered my contribution?
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