SEP-IRA & Traditional IRA
-Married & file jointly
-Both husband and I have W-2 income.
-Husband belongs to and contributes to his company's 401(k) plan
-I do not have a company 401(k) or equivalent plan from my W-2 income/place of employment
-For the past 3 years, I now have self-employed income, totally unrelated to my W-2 income - I am the only person involved in this self-employed income.
-Last year, for the first time, I contributed to a SEP-IRA. The bank set this up with a Form 5305-SEP.
-I am now over 50 years old.
-It appears that I might be able to contribute and deduct $6,000 to a Traditional IRA.
-Based on the net income earned from my self-employed business, I can contribute approx $1,200 to a SEP-IRA
Can I contribute to and deduct for both a Traditional IRA (based on my W-2 income) AND a SEP-IRA (based on my self-employed income)? Or does the fact that I set up a SEP-IRA for 2008 mean I am covered by a qualified retirement plan and therefore am NOT able to contribute to a Traditional IRA?