Thank you for your help! I'm still confused, though, on whether $6,500 is the limit for ALL contributions (when you combine SEP with the traditional IRA). In other words, can I put $6,500 in a traditional IRA and 25 percent (which would be about $3,000) in the SEP (for a total of $9,500) or do I have to reduce the traditional IRA by $3,000 to bring the total own to an overall $6,500?
