<bakhshim[at]gmail.com> wrote:

- quote -

What you do at work doesn't affect either you SEP contribution or your
traditional/Roth IRA contribution. Because you are covered by a retirement
plan, any traditional IRA contribution's deductibility depends on your
income. See Publication 590.

Assuming you're under 70 1/2 you can, in addition to what you do at work:

1. Contribute $5,000 ($6,000 if you were 50 on 1/1/2009) to a traditional
or Roth IRA or a combination of the two. AND

2. Make your maximum SEP contribution, which is deductible. That maximum
is 20 of (your Schedule C bottom line minus the adjustment to income for
self-employment tax on page 1 of the 1040.) See Publication 560.

--------------
Phil Marti, VITA Volunteer
Clarksburg, MD

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Assuming you have a sole proprietorship that is independent of your
day
job and have a SEP IRA connected with that sole proprietorship- are
you allowed to distribute the tax deductable amount into a traditional
IRA and a SEP-IRA, in addition to the TIAA/CRAF contribution through
work?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >