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SEP-IRA and non integrated 401(K) together


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Guest firstq
Posted

Can I as a sole proprieter cotnribute fully to my SEP-IRA (25% of the net income) and draw salary for myself and spouse upto 12K and move most of it to the non-integrated 401(K) - assuming 11K 401K limit max for 2002.

Thanks

Posted

Arguably, you could have had a 25% SEP (based on net earned income) and make elective contributions to a qualified 401(k) plan (based on your earned income) and on the W-2 compensation of non-owner employees.

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