"karl1973[at]my-deja.com" <karl1973[at]my-deja.com> wrote:

- quote -

Interesting question. My off the cuff take is that each
contribution to the SEP and Roth are made independently of
each other for purposes of the earned income calculation.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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My father has been retired from his regular job for years,
but he still works part time selling real estate. This
produced self-employment income of $7,240 last year. Since
both parents are over 50 (they're 75), they will each
contribute $3,500 to a Roth, for a grand total of $7,000.
(My mother doesn't work, so her contribution is being made
based on his income.)

Now for my question: How much can he contribute to his
SEP-IRA? I assume the maximum would be $240, since when
added to their Roth contributions this totals $7,240, his
total earned income for the year.

I'd strongly suspect that the IRS doesn't allow one to make
contributions to retirement plans that exceed their earned
income.

Thank you in advance for taking the time to answer my question.

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