Q: I work at a company that offers a 401K, W-2 status. I work also as a 1099. I put the maximum amount in the company 401K and the maximum amount in the Traditional IRA with conversion to a Roth IRA. I would like to know how much can I put (in terms of a SEP IRA) for next year’s taxes? Fidelity has told me that with a combined W-2 and 1099, the limit for the 401K is $17,000 approximately, the limit for SEP IRA is $49,000, and Roth IRA is $5,000. I thought the limit was $50,000 per year, by whatever means. Please clarify.
A: Great question… You are correct. The max that you can contribute in any combination is $49,500. Thanks for your email!