FAQ Individual Retirement Arrangements (IRA): Traditional IRA

Traditional IRA

This is archived information that pertains only to the 2002 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Can an individual who is contributing to a SEP-IRA also contribute to a traditional IRA?

Yes, if they meet certain requirements. A SEP-IRA is considered a retirement plan, so the Adjusted Gross Income (AGI) limitations have to be considered. If your AGI, which is computed after the SEP contribution, is in excess of those limits, then the IRA contribution that you make would be nondeductible. The information on the AGI limits is in Publication 590 (PDF), Individual Retirement Arrangements (IRAs) , in the section How Much Can I Deduct?

References:

Publication 590 (PDF), Individual Retirement Arrangements (IRAs)
Tax Topic 451, Individual retirement arrangements (IRAs)

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