CIRCUMSTANCES:
I am self-employed and 62. The last few years, weren't great. But, I saved and funded my personal, traditional IRA with the previous year's savings.
2022 EXAMPLE: I earned and saved in 2021. In January of 2022, I contributed the max amount (base + catch-up = $7000) to my traditional IRA. I do this so it has as much time to grow as possible. Basically, I don't wait to see how much money I make for the year and use left-over. I pay my retirement first.
However, 2022 turned out to be a much better year for my business. I need additional solutions to tax management and retirement savings for 2022. (Unfortunately, I was not thinking about taxes until after December 31, or I'd have started a solo 401K.)
So, my questions are:
#1) Can I use an SEP-IRA (as a self-employed "employer" provided retirement plan) along with having already maximized my personal IRA as an individual?
Are there any rules preventing me from contributing to both for the same tax year?
#2) Can I still contribute the max of each to each?
(My rate of $7000 to traditional IRA and 25% of net income to SEP-IRA) Or, is the total annual contribution different? Like IRS's favorite, "the lesser of line #..." rules? The rates for the contributions are calculated completely differently. BUT, they are both IRA's???
#3) AND, can I open a solo 401K for the same year as having a SEP-IRA?
According to reading irs.gov, if I use a 5305-SEP prototype for the SEP-IRA, I can have multiple retirement plans. But, are there any rules that prevent me from fully contributing to a SEP-IRA and a solo 401K at the same time?
I am aware I would not be able to make employee contributions to the 401K since the year has ended. But, solo 401K "employer" contributions are allowed until tax filing. I just don't know if there is a rule I haven't found that prevents using both retirement plans and employer contributions for the same year. Or a rule, that explains contribution limits to do this.
My TurboTax Personal and Business should arrive tomorrow. First time user and very excited to try it. But, I've got to prepare my finances before I start. Help???
