SEP IRA contribution question

[Indra Tanudjaja]

Hi, 

maybe this scenario was discussed before. i could use some advice from CPA/EA.

my scenario: 

I opened SEP IRA years ago when i was self-employed.. and then i haven't been self-employed for the past 10 years..

so  , the question: 

can i contribute funds to my SEP IRA with the income i earned from my current employer (which is after-tax income)?

( i researched online, SEP IRA funds should be "pre-tax"? )

thank you for your time,

regards

Indra

[Dmitriy Fomichenko]

Indra, you should convert your SEP IRA into Traditional IRA, and then you can contribute up to $5,500/yr (plus $1,000 catch up if you are over 50). While you may be contributing post tax dollars, when you do your tax return for that year you will be able to deduct the contributions so it will end up being pre-tax dollars.