Multiple Retirement Plan Contribution Limits

[Jason Poindexter]

Hello. Can anyone tell me what the max contribution limits would be if I held multiple retirement accounts? For example, I have a Solo 401K, Rollover IRA, SEP IRA and Roth IRA. How do I utilize these various accounts to maximize my savings.

Thanks!

[Mark Nolan]

@Jason Poindexter

1. Contributions to all self-employed plans are aggregated so the maximums is $53k plus a $6K catch up for those age 50 or older if made to a solo 401k as the SEP IRA rules do not allow for the $6K catch up contribution.

2. Contributions to Traditional IRAs are not affected by contributions to self-employed plans like a solo 401k; however, the IRA contribution may not qualify for the full deduction if your earned income is over a certain limit, but it would qualify as an after tax IRA contribution.

3. Roth IRA contributions may be made in addition to your solo 401k contributions if your AGI is under a certain limit.

RESOURCES

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2016

https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-you-re-eligible-for-more-than-one-retirement-plan