traditional ira with sep ira

[mo42nyy]

I just got off the phone with both fidelity and vanguard
They both told me I would be allowed to have both a Sep Ira (up to the max contrinution based on my income) AND a traditional IRA maxed out at 4k per year.
Is this correct?

[TheMetetron]

If so, I'd like to know about it. I don't think you can though.

[Preem]

[ QUOTE ]
I just got off the phone with both fidelity and vanguard
They both told me I would be allowed to have both a Sep Ira (up to the max contrinution based on my income) AND a traditional IRA maxed out at 4k per year.
Is this correct?

[/ QUOTE ]
They might be correct, but it depends on your individual situation.

Under certain circumstances, you can do both. I qualified for both in 2006, but don't ask me to explain why because my tax accountant prepared my return.

Here's an example. The ceiling on the SEP IRA contribution is 25% of your self-employed income. However, depending on your circumstances, you might not be able to contribute the full 25%. For some reason, I didn't qualify for the full 25%, but I have no idea why not.

This is one of those times when it pays to have a qualified tax accountant do your return, because Turbo Tax probably won't be able to handle it unless you call up the specific forms and fill them out manually. The generic TTax interview won't cut it.

[mo42nyy]

If it helps my 2006 net profit would be under 50k

[OrangeCat]

My accountant said I could do both.