Self-Employed? Go Ahead, Make That IRA Contribution
Your IRA contributions don't affect your Simplified Employee Pension or solo 401(k) limits.
Question: I’m self-employed and want to contribute to a Simplified Employee Pension (SEP) or a solo 401(k). Can I also contribute the full amount to a Roth IRA?
Answer: Yes. Your IRA contributions don't affect your SEP or solo 401(k) limits. The IRA can be a Roth if your modified adjusted gross income is less than $133,000 and you file taxes as an individual, or $196,000 if you're married and file jointly. The contribution amount starts to phase out if you earn more than $118,000 if single or $186,000 if married filing jointly.