Today TaxMama hears from Alejandro, in the Tax Parlor, who tells us. “I have a regular 9 to 5 job and also have my own business. I want to know if I can both contribute to a regular 401(k)plan and also invest in a 401(k) plan? I would therefore be exceeding the $44K per year allowance in the SEP IRA! Is that permissible?”
Sure, you may contribute to your job’s 401(k) plan – and your own SEP.
BUT, you may NOT exceed the annual limits.
There are other things you may do – but they’re expensive.
So unless you’re making a lot of money in your own business, and you don’t need the money AND you’re going to be making that kind of money for the next 5 years or so…stick to the limits.
Otherwise, it’s time to sit down with a good, local tax professional to do some planning – and a good investment advisor to put that money to work for you.
And remember, you’ll find answers to lots of questions about retirement plans and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]
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