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.
|