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IRA, 401k & SEP IRA. Can I have it all?

I have has ~5k in 1099 income for 2015. I also have a W2 for the year. When it comes to retirement accounts, I have IRAs (rollover 401k), an active 401k, a roth 401k and a roth IRA. I didn't make any LLC or anything else for the 1099 income. Just worked as a contractor. When I was looking to see if we can reduce our taxable income for 2015, I came across SEP IRA. So, hereunder are my questions:

  1. My information from digging through IRS FAQs is that I can open up a SEP IRA even though I don't have an llc. Is my understanding correct?
  2. Contribution limits for SEP IRA is 53,000. Even though my 1099 income is just 5k, can I contribute more than 5k to the SEP IRA account or is the contribution limit - 25% of the 1099 income?
  3. Can I have an IRA, 401k and SEP IRA all together?
  4. If I can have it all, does the IRA consider all of the funds as commingled?
  5. Are there any pitfalls to watch out or strategies that will side step issues with having 3 such accounts?

Thanks for your time.

Feb 08, 2016 by Arunkumar in  |  Flag
1 Answer  |  2 Followers
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If you are contributing to a 401k, you can also contribute to a sep-ira for self-employment income but only up to 20% of your self-employment income. Are you maxing out on your 401k-if not, probably easier to just contribute to that for now.

1 Comment   |  Flag   |  Feb 10, 2016 from Manhattan, NY
Arunkumar

Yes, I've maxed out my 401k.

Flag |  Feb 10, 2016

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