It's been over 20 years since I've actively worked with retirement plans, and I'm rusty. Before I lead someone down the wrong path, could I please get confirmation that my route is correct?
Over the years, a self-employed person has greatly benefited from SEP-IRA contributions. Her business did well, and her SEP deposits were large.
For 2023, her SE income is unusually low. Her SEP-IRA maximum is about $2,500.
If she doesn't make a 2023 SEP contribution (she has no employees), she (1) isn't covered by an employer plan for the year and (2) can make tax-deductible, traditional IRA deposits for herself and her fully-disabled, nonworking husband. The amount is about 5X greater than the available SEP-IRA.
Is my methodology correct? I see this option as a good way to help someone who wants to maximize both her retirement savings and 2023 deduction.
Thank you for your help.
