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posted Jun 1, 2019 4:48:47 AM

I am both self employed and an employee. How much can I ask my employer to deduct from my salary to company retirement plan and how much can I contribute to my own IRA?

I work on my own as an independent contractor, and as an employee. Same profession. Thanks!!!

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1 Replies
Level 9
Jun 1, 2019 4:48:48 AM

It may depend on the type of employer plan, and the plan's limits.  The most common employer plan is a 401k, and you can hypothetically contribute 100% of your salary, up to $18,000 (2017 amount) or if you are over age 50, $24,000 (2017 amount).  You should ask your employer about any limits.


You can contribute up to $5500 to an IRA ($6500 if age 50 or older).  However, the deduction may be limited, depending on your total income.
https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

Your self employed business can also set up its own retirement plan, such as a SEP or its own 401k plan.
https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people