Ep. 155 - Can You Have a Roth IRA and SEP IRA at the Same Time? (Ask a CFP®)

The Good Financial Cents Show w/ Jeff Rose, CFP®

You know you love the Roth IRA!

What’s NOT to love about free tax money?

Sometimes it is nice to get that tax deduction.

There is a pre-tax retirement tool called the SEP IRA - we are going to answer a reader question today about the SEP IRA.

The question: “I have a question about the SEP and Roth IRA - if my employer does not offer any type of retirement benefits, but I do have a Roth IRA from a previous employer - I am regularly contributing to my Roth IRA - also I would like to contribute to a SEP or Simple. Can I contribute to each without penalty? I am above the age of 50, what is the best route for me to contribute without getting a penalty/

I have spent a lot of time answering questions about the Roth IRA, but this one is unique. He is asking if he can have a SEP and a Roth.

6:00 What is a SEP and how does it work? 7:33 3 steps to set up a SEP 8:06 SEP vs Roth IRA from employer perspective 9:15 Who can open a SEP or Simple IRA 10:25 Contribution limits 15:45 Can you have both a SEP and Roth IRA?

Resources:

Distribution Rules for SEP IRAs

Rules and Limits to Open a SEP IRA for 2022

Roth IRA vs Traditional IRA: Understand the Difference

https://wealthhackerlabs.com/ask/