I am 40 years old and I just opened SEP IRA and ROTH IRA. I contributed $6000 for 2021Roth IRA and $6000 for 2022 Roth IRA. Could I contribute to SEP IRA (2022). I am self employee ( I have a LLC) with no employee. My gross income last year $23000 ( net income is about $10000) . This year my income from 1099 will rapid decrease because one of my workplace decided to pay with W2 with no retirement plan. What should I do and prepare for next year tax ?
Since you were self employed in 2021 you can contribute to a 2021 Roth IRA as well as a SEP IRA if you make the contributions before April 18. Since you will not be self employed in 2022 you can’t make a SEP IRA contribution for 2022 but of course you can contribute to your Roth IRA for that year.
thank you but how much is the right amount . I know there is the the maximum is $6000 for RoTH and 25% income for Sep IRA but I don't know exactly how it is counted .