Can I decide if I want to make a Traditional IRA contribution instead of a SEP contribution for 2018? The refund is bigger if I contribute to traditional vs SEP.

[corrinaruttkar]

The self employed net income is $6,000.  Can I contribute $6,500 to a traditional IRA (I am 55) if my net income is $6,000?  Can I contribute to the traditional and not the SEP in 2018 even though I opened a SEP last year?

[Zbucklyo · Accepted solution]

You can only contribute up to your taxable compensation for the year.  If this is your only compensation, you can contribute more to the Traditional IRA than the SEP, but not $6500.