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Old 05-16-2016, 11:48 AM
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SARSEP & tIRA

as an employee i contribute $ to my SARSEP, does this reduce the amount i can contribute to a tIRA or ROTH ?

I see the limits for the SARSEP and limits for traditional, i have read form 560 & 590A and didn't see where they spell out if you can do both...

married filing jointly AGI < $98k



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Old 05-16-2016, 08:45 PM
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Join Date: Oct 2010
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Quote:
Originally Posted by timr View Post


#1as an employee i contribute $ to my SARSEP, does this reduce the amount i can contribute to a tIRA or ROTH ?

#2I see the limits for the SARSEP and limits for traditional, i have read form 560 & 590A and didn't see where they spell out if you can do both...

married filing jointly AGI < $98k
#1; A t IRA may be the only active plan offered by an employer. The T IRA replaced the SARSEP about 10 years ago however a SARSEP may still be operated if it had been in existance at the time and new participants may still be added. Just no new SARSEPS may be established. I don't see the point for continuing both even if you could. The SIMPLE IRA will acheive the same result generally speaking. If you haven?t already established a SARSEP, you can?t choose one now because a law change prohibited new SARSEPs from being established after 1996sarseps are increasingly rare
If your employer offers a SARSEP it?s only because plans set up before 1997 are still allowed as long as certain conditions are met. no restrictions on contributing to both a SARSEP and a Traditional IRA in the same year so you do not need to reduce your Sarsep contribution to also contribute to a Traditional IRA. , however, there are income limits to deducting contributions to a Traditional IRA. those with workplace retirement plans can only take the full deduction on a Traditional IRA if yiurincome is less than $59k ($95k if married). You need professional advice form retirement plan admin.also, t IRAs and Roth IRAs are not aggregated for contribution limit purposes, one does not affect the other


#2;As mentioned above you need some professional/accurate advice from a plan admin.



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