Hi I am self-employed and am looking to open an SEP IRA and contribute a portion of income to it. Am I allowed to create SEP IRA and Traditional IRA and contribute to both in same year? I know that Roth IRA and Traditional IRA I would be restricted on what I can contribute because it would be divided amongst them both but does the same rule count for SEP and Traditional IRA if I wanted to contribute to both would I be restricted somehow?
You can fund your SEP IRA and also fully fund your Roth or traditional IRA. However you would not get a deduction for a traditional IRA contribution since the SEP contribution is considered to be an employer contribution.
You may be able to contribute to a SEP plan and a traditional and/or ROTH IRA, dependent on income and contribution limits. TurboTax has a calculation tool that will allow you to determine what your maximum SEP contribution is. You will see this when you enter your business income and expenses, on the screen that says Let's gather your business info, and then Less Common Business Situations, and then Self-employed Retirement.