Originally Posted by
svergin
Also if you have self-employment income from a side job you have yet another $59k bucket to put funds into a SEPIRA as long as its income from the 1099 income. So you can put $118,000 away tax free each year.
You had me excited for a minute thinking I could use my other business to put away more money. I had always been told I could not. Turns out that is correct.
Here is the IRS FAQ:
More than one plan. If you contribute to a defined contribution plan (defined in chapter 4), annual additions to an account are limited to the lesser of $53,000 or 100% of the participant's compensation. When you figure this limit, you must add your contributions to all defined contribution plans maintained by you. Because a SEP is considered a defined contribution plan for this limit, your contributions to a SEP must be added to your contributions to other defined contribution plans you maintain.
So the total for all plans is 53K/59K, depending on age.