Contribution for sep ira and roth ira together

[Isikserra]

I am self employed and getting 1099 from my employer!! I have a Sep IRA, traditional IRA and Roth IRA 

I make my own contribution to all of them!! What is my total contribution amount all together to these accounts? I made $4400 to Roth IRA and traditional IRA all together but i also made contribution of $15000 to my Sep IRA account so it is all together $19400

Am i ok with this amount or exceeded?

Because my accountant says i can't make more than  $8000 all together!! What do i need to do?

I need help !!

[Bsch4477 · Accepted solution]

If age 50 or older your total traditional and Roth IRA amount is $8,000. But in addition you can contribute separately to a SEP IRA. 

• If you're self-employed, your contributions are generally limited to 20% of your net income. (Net compensation for self-employed individuals is generally the net profit from IRS Schedule C reduced by the deductible self-employment tax. The eligible compensation limit, indexed for inflation by the IRS, is $345,000 for 2024 or $350,000 for 2025.)

[dmertz · Accepted solution]

Keep in mind that, absent other compensation from a W-2 employer, the sum of your traditional SEP IRA contribution, personal traditional IRA contribution, Roth IRA contribution and the deductible portion of self-employment taxes is also not permitted to exceed your net profit from self employment.

[Isikserra]

Thank you so much for your reply! I want to give more information about myself? I am an independent contractor in a sport club and work as a massage therapist! I receive 1099 from the club!! I am sorry i need to correct i made $8000 contribution to my Sep IRA and $4400 to my Roth and Traditional IRA together so the total is $12400. You are saying that i can do that? Do i need to withdraw the excess

contribution? What do i need to do for tax purposes? Why is my accountant telling me that i can only contribute $8000 all irs accounts combined? How do i need to explain to her? 

Thank you again

[dmertz]

A SEP contribution of $8,000 requires a net profit from self-employment of at least $43,040.  With that much net profit, the amount that you contribute to the SEP IRA has no effect on the amount that you are permitted to contribute to the regular traditional and Roth IRAs.  The contributions to the regular traditional and Roth IRAs combined would be subject to the separate annual limit of $7,000 if under age 50 or $8,000 if over 50.  (The Roth IRA contribution could be limited based on Modified AGI for the purpose, but whatever portion of the annual limit cannot be contributed to the Roth IRA could be contributed to the traditional IRA.)