Contribute to Solo 401k and SEP IRA

Contribute to Solo 401k and SEP IRA | Open Solo 401k and SEP IRA | Transfer SEP IRA to Solo 401k | Rollover SEP IRA to Solo 401k

Can I contribute to SEP IRA and Solo 401k? Good question and the answer is yes the IR rules allow the self-eployed to contribute to both a Solo 401k and a SEP IRA. Therefore, you can Open Solo 401k if you have an existing SEP IRA for your owner-only business and contributed to both plans.

In fact, the rules allow the business owner to contribute to multiple retirement plans as long at the annual contributions limits are not exceeded between the two plans. Therefore, you could contribute to the SEP IRA and Solo 401k in the same year as long as the annual contribution limit is not exceeded.
Make sure to notify your new Solo 401k Provider if you want to rollover part or all of your SEP IRA to Solo 401k so that they can prepare the proper rollover form.

Refer to publication 560-Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) page 6 "More than one plan" for more information on contributing to more than one plan.

Here's link to PDF regarding pub 560:
http://www.irs.gov/pub/irs-pdf/p560.pdf