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I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

The situation is like this. My primary occupation is freelance technology consultant. But I occasionally do movie stunt work.

 

As a freelance consultant I contribute to a SEP.

 

When I do the stunt work I may end up working under the SAG union contract. When I do that I will receive a W-2 with Box 13 Retirement Plan checked.

 

Will receiving this w-2 prohibit me from contributing to the SEP for that year?

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6 Replies

I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

Yes you can have both a SEP and a 401K. 

I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

Thank you for the quick response.

 

Would having the 401(k) make the contributions to the SEP post tax dollars?

 

What I'm trying to avoid is having a small contribution to a retirement plan be an issue for the larger pre-tax contribution to the SEP.

 

Thanks in advance

 

I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

One type of retirement account has no bearing on the other.  

dmertz
Level 15

I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

SEP contributions can never be after-tax contributions.  They can only be pre-tax.

I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

So if I received a w-2 with Retirement Plan on Box 13 checked that would prohibit the SEP contribution since I'm "eligible" for another retirement account?

I received a w-2 that has Box 13 Retirement Plan checked, can I contribute to SEP

Again having a 401K will not prohibit you from contributing to a SEP. 

 

  • Finally, if you have a 401(k) through an employer and have a SEP IRA for your self-employment income, each contribution is treated separately. You can defer up to $18,000 of your salary into your 401(k) and your total contribution is limited to $53,000 ($59,000 if over 50) after your employer contributes, as discussed earlier. Since your SEP IRA contributions are considered to come from the employer, none of it counts toward the $18,000 salary deferral limit, so you can contribute up to $53,000 or 25% of your earnings, whichever is less.

https://www.fool.com/knowledge-center/can-a-person-have-a-401k-and-sep-ira-simultaneousl.aspx

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