Double Retirement Contributions

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?”

Hi Alejandro,

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

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