Having both a SEP-IRA and Solo 401k
 

I'll be filing my taxes as self-employed since most of my income in 2007 has been from poker. Also, I want to be able to make contributions to my Roth and any other retirement vehicles that may be available to me. Apparently I can't do so if I just file a 1040 and put down my profits down as gambling winnings.

I'd like know if it's possible and legal to have both a SEP-IRA and Solo 401k and what the contribution rules/restrictions would be. It would be pretty sweet to be able to contribute the max for both the SEP (25% of earnings) and also for the Solo 401k ($15.5k + 25% of earnings). Alot of tax savings right there. Also, having the two separate accounts would allow for versatility of investment choices. For example, a Solo 401k account opened at T Rowe Price only lets you invest in T Rowe funds while a SEP-IRA at Vanguard lets you invest in other funds and securities outside of the Vanguard family.

Re: Having both a SEP-IRA and Solo 401k
 

You can't have both. Choose one.

Re: Having both a SEP-IRA and Solo 401k
 

I think you can have both. For example you could setup a solo in 2007 and a SEP in 2008. However in any given year you can only make the max contribution to one.

Re: Having both a SEP-IRA and Solo 401k
 

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I think you can have both. For example you could setup a solo in 2007 and a SEP in 2008. However in any given year you can only make the max contribution to one.

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Correct, sorry. You can only contribute to one or the other in any given year. Of course it is possible to have both but only contribute to one in a given year.

Re: Having both a SEP-IRA and Solo 401k
 

can you have a sep and a regular ira?

Re: Having both a SEP-IRA and Solo 401k
 

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can you have a sep and a regular ira?

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Yes, though a traditional IRA is non-deductible (unless you already qualify for a Roth) meaning they usually aren't the best idea ever. ETFs and tax-managed funds are very tax-friendly and are taxed at a lower rate than traditional IRAs when cashed in.

Re: Having both a SEP-IRA and Solo 401k
 

traditional iras are deductable

Re: Having both a SEP-IRA and Solo 401k
 

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traditional iras are deductable

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Not if you make over a certain income threshold. I'm not sure if you can have both a deductible traditional and a SEP. For non-deductibles I know you can.

Re: Having both a SEP-IRA and Solo 401k
 

I guess I will just wait until the Roth Solo 401k's become more widespread and available at the big names. In the meantime, I just opened up a SEP at Vanguard. Can I contribute to it this year but transfer everything in it to a Roth Solo next year?

Re: Having both a SEP-IRA and Solo 401k
 

I am not an expert on this but, I don't think you can just dump $45K into a SEP this year and then transfer it into a tax free ROTH next year. That would be robbery.