robhat

In a related question, I understand that I must have a prototype SEP IRA which allows simultaneous contribution to other plans such as the DB plan. I was told that funding a prototype SEP for the self-employed individual (sole proprietor, no employees) reduces schedule C income and could therefore impact DB plan calculations (I plan to fund the DB plan to the max allowed). Is this correct? On the form 1040, the deduction for both DB and SEP contributions is taken on line 28 and not as a schedule C expense. Would like to maximize retirement income, if possible.

I am once again reviving this thread (at least I hope someone can answer me) I opened model SEP-IRA through fidelity and contributed in 2014. I did not make any contributions to any SEP after tax year 2014 but I never closed it. I opened a DB plan and contributed in 2015 and 2016. Both plans remain open but I have only contributed to one or the other in a given tax year. Are the IRS rules about the limits of contribution each year or about even having both open together? I'm a sole proprietor and the only employee.