SE Retirement contributions

Forum|Forum|11 months ago
August 5, 2025
3 replies
18 views

Can a self-employed Schedule C business contribute to both a SEP and a 401K for the same year? This is his only business, has no employees. She wants to make a contribution to both. Proseries does not give an error on the Keogh/SEP/Simple Contribution Worksheet on the 1040 when I post amounts to both.

Individual

ljr

Level 9

google says yes a solo 401K and a SEP

I didn't go down that rabbit hole to get you limits

T

TaxGuyBill

Level 15

Yes, but why? The employer contribution limits don't increase by spreading it out between two plans.

qbteachmt

Level 15

Are these plans both established by the same business, this person's SE operation? Is that a solo 401(k) or regular (with employees)? Are there employees?

How old is your taxpayer? What does the software give for the amount they can contribute to each plan?

Don't yell at us; we're volunteers

P

pamnicholeaAuthor

Level 2

Yes, both plans are linked to her sole-proprietorship. In 2023, she contributed $30,000 to her solo 401k and maxed out her SEP for $13,632. These are the max amounts calculated in Proseries on her $73,340 schedule C income. She is 62 years old and had no employees. Thank you.

T

TaxGuyBill

Level 15

@pamnicholea wrote:

In 2023, she contributed $30,000 to her solo 401k and maxed out her SEP for $13,632.

Assuming she is age 50 or older, $30,000 was the maximum employee deferral amount.

The $13,632 is the employer contribution. A SEP was fine, but she could have also put it into the 401k instead. There was no need for a separate retirement account for that.

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