A SEP IRA allows a qualified self employed person to contribute up to $55,000 but limits this based on a maximum of 25% of income. Just going by what you wrote it looks like Turbo Tax is telling you that you hit the limit at $2,744 based on your income for the business. A Traditional or ROTH IRA has a lower max limit than a SEP but doesn't have the 25% max limit either, so yes, you should be able to contribute to a Traditional assuming your total income is below the total income limits set by the IRS. Something to consider since your income was $14k if your total income is in a low tax bracket you might do the math to see if a ROTH makes sense. This would allow your contributions to grow tax free so that later when you are presumably in a higher tax bracket your ROTH would be tax free! This would make sense if you don't need the tax deferments now. Good Luck!
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All good advice. I am in the pay down debt group. You cant get ahead if you are paying 12%, 14%, 18$, or worse 24% interest! Pay down that debt and you just MADE 12%, 14%, 18% or 24% interest! Then take the money you WERE using to pay that monster and have it automatically deducted from your bank account monthly and deposited into a no load mutual fund, my favorite something like the Fidelity Contrafund, or a mix of Large Cap and Small Cap aggressive growth funds. I am assuming you are under 50. You are smart to realize doing this will be good for your financial well being in the long run. Good Luck!
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