Is it possible to max out both a SEP IRA and Roth IRA in the same tax year?

Thank you for clarifying! That's what I thought but wasn't completely sure. So if I'm understanding correctly, I can put up to 25% of my net self-employment income in the SEP (up to the annual max) AND still put the full $7,000 in my Roth IRA as long as I'm under the income threshold?

Yes, that's exactly right. You can contribute up to 25% of your net self-employment income to your SEP IRA (up to the $69,000 limit for 2025) AND you can still contribute the full $7,000 to your Roth IRA since you're under the income threshold. The SEP IRA contribution doesn't count toward or affect your eligibility for Roth IRA contributions. They're treated as separate buckets with separate limits. Just make sure you're calculating your SEP contribution correctly - it's 25% of your net self-employment income after deducting the SEP contribution itself and self-employment tax.

Does this actually work for self-employed people with variable income? My income fluctuates a lot month to month, and I'm never sure how to calculate my retirement contributions properly.

I'm interested but skeptical. Does it integrate with tax filing software? I use FreeTaxUSA and don't want to have to manually enter everything twice.

It works great with variable income - you can either enter your projected annual income or update quarterly as you go. The system adjusts your contribution limits based on the most current information, and you can run different scenarios to see how changes in income affect your limits. As for tax software integration, you can export reports that are compatible with most tax filing platforms. It's not a direct integration where it automatically populates your tax forms, but the export formats make it easy to transfer the information. The reports break down exactly which forms and line numbers need the information, which makes manual entry pretty straightforward.

How does this actually work? Do they just call the IRS for you? Couldn't I just do that myself?

Sorry but this sounds like a complete scam. The IRS has never given me a straight answer about anything, and I doubt they'd suddenly become retirement planning experts for a random caller.

They don't just call for you - their system navigates the IRS phone tree and waits on hold, then calls you when an actual agent is on the line. You can definitely call yourself, but you might be on hold for 2-3 hours (I tried multiple times before giving up). The key is knowing what department to ask for and what questions to ask. I specifically asked for the Tax Law department and had my question about retirement account contribution limits prepared. Not all agents are equally knowledgeable, true, but the one I spoke with was able to direct me to the specific IRS publications that covered my situation. It's not about them being retirement planning experts - it's about getting clarification on tax laws directly from the source.

Wait, that's really confusing. Why wouldn't it just be a straight 25% of my business profit? Is there a simpler way to think about this calculation?

It's confusing because the contribution is technically made by your business (even though you are the business as a sole proprietor), and the contribution itself reduces the business's net income. A simpler way to think about it is to just use 20% of your Schedule C net profit as a quick estimate. So if your business made $100,000 net profit, you could contribute about $20,000 to your SEP IRA, not $25,000. The official calculation ends up right around 20% for most people. If you want to be precise, there are plenty of SEP calculators online that will do the math for you. Just search for "self-employed SEP IRA calculator" and you'll find several free options.

This is actually incorrect information. SEP IRAs do count as traditional IRA basis for backdoor Roth purposes, but that doesn't "complicate" things - it prevents them entirely if you have a significant balance. You'd have to either convert your entire SEP to Roth (huge tax bill) or roll it into a solo 401k first before doing backdoor Roth.

This is really helpful to hear from someone who went through the same situation! I'm curious - when you were prioritizing the Roth IRA contributions, did you find it better to make the full $7,000 contribution early in the year, or did you spread it out monthly? I'm trying to figure out the best approach since my freelance income can be pretty irregular month to month. Also, completely agree about potentially needing a new accountant. It's concerning when they're not familiar with basic self-employment retirement rules. Do you have any recommendations for finding someone who specializes in freelancer/self-employed tax situations?

Great questions! I ended up doing a lump sum contribution to my Roth IRA early in January once I was confident about my income projections. With irregular freelance income, I found it easier to just get that $7,000 locked in rather than trying to time monthly contributions - especially since I knew I might lose eligibility if my income bounced back faster than expected. For finding a good accountant, I'd recommend looking for CPAs who specifically advertise experience with self-employed clients or small business owners. The AICPA website has a "Find a CPA" tool where you can filter by specialties. I also found success asking in local freelancer Facebook groups or checking with your local SCORE chapter - they often have recommendations for tax professionals who understand the unique challenges of variable income and multiple retirement accounts. Interview a few candidates and ask them specific questions about SEP vs. Solo 401(k) options, quarterly estimated tax planning, and how they handle clients with both W-2 and 1099 income. If they seem confused or give vague answers about basic self-employment tax strategies, keep looking!

For the timing question, I ended up front-loading my Roth IRA contribution early in the year when I had a good month, which worked out great since it gave me more time in the market. But honestly, with irregular freelance income, the most important thing is just making sure you get the full $7,000 in before the deadline - whether that's monthly or in chunks doesn't matter as much as actually doing it. For finding a good accountant, I'd recommend looking for someone who specifically advertises experience with self-employed clients or small business owners. The NAEA (National Association of Enrolled Agents) has a directory where you can filter by specialties. I also found it helpful to ask other freelancers in my field for recommendations - they often know who actually understands the nuances of irregular income and business deductions. A good test question is asking them about the SEP IRA calculation we discussed earlier - if they immediately know it's effectively 20% rather than 25%, they probably know their stuff!

@Tyler Lefleur Great questions! I ended up doing a lump sum contribution to my Roth IRA in January since I had some cash flow from a big project that finished in December. But honestly, with irregular freelance income, monthly contributions can work better for cash flow management - just set up an automatic transfer for whatever amount works $583/month (gets you to the $7,000 max .)For finding a good accountant, I d'recommend looking for someone who specifically advertises experience with self-employed clients or has an EA Enrolled (Agent designation.) I found mine through the National Association of Tax Professionals directory, filtering for people who list self-employment "as" a specialty. Also ask potential accountants upfront about SEP vs. Roth IRA rules during your initial consultation - if they hesitate or seem unsure, keep looking! Another tip: many good self-employment focused CPAs offer quarterly check-ins which can be super helpful for planning retirement contributions as your income fluctuates throughout the year.

Great questions! For the Roth IRA timing, I ended up doing a lump sum contribution early in the year since I had some cash flow from a big project that came in January. The benefit of getting it in early is maximizing the time in the market for growth, but if your income is irregular, monthly contributions might be more manageable for cash flow. One thing I learned is that you can always contribute more in good months and skip months when cash is tight, as long as you hit your annual limit by the tax deadline. I actually kept a simple spreadsheet tracking my contributions so I knew where I stood throughout the year. For finding a better accountant, I'd recommend looking for someone who specifically advertises experience with freelancers or self-employed clients. The National Association of Enrolled Agents has a directory where you can filter by specializations. I also asked in some local freelancer Facebook groups and got good recommendations. Interview a few candidates and ask them specific questions about SEP IRAs, quarterly taxes, and business deductions to gauge their expertise. The right accountant should be excited to help you maximize your retirement savings, not confused by basic rules!

Great questions! I ended up doing a lump sum contribution to my Roth IRA in January since I knew I'd be under the income threshold for the year, and I wanted to maximize the time in market. But if your income is truly unpredictable, spreading it out monthly might be safer - you can always adjust if your income unexpectedly spikes above $153k. For finding a good accountant, I'd recommend looking for someone with an Enrolled Agent (EA) credential who specifically mentions self-employment/freelancer expertise on their website. I found mine through the National Association of Enrolled Agents directory. You want someone who regularly works with Schedule C filers and understands the nuances of SEP IRAs, Solo 401(k)s, and quarterly estimated taxes. A good screening question is asking them about the SEP IRA contribution calculation - if they immediately know it's effectively 20% rather than 25%, that's a good sign they know their stuff!

Great questions! I ended up doing a lump sum contribution to my Roth IRA in January since I wanted to maximize the time in the market, but monthly contributions can work well too if your cash flow is inconsistent. The key is just making sure you get that full $7,000 in before you potentially lose eligibility again. For finding a good accountant, I'd recommend looking for someone who specifically advertises experience with freelancers and self-employed clients. The NAEA (National Association of Enrolled Agents) has a good search tool on their website where you can filter by specialties. I also found success asking in local freelancer Facebook groups - other self-employed people in your area usually have great recommendations for tax pros who actually understand our unique situations. You want someone who immediately knows the difference between SEP and traditional IRA rules, understands quarterly estimated taxes, and can help you optimize your business structure as you grow. Red flags are anyone who seems confused by basic self-employment tax concepts or tries to give you cookie-cutter advice that doesn't fit your situation.

@ce65d8d68218 For the Roth IRA timing, I ended up doing a lump sum contribution early in the year since I wanted to maximize the time in market for compound growth. But with irregular freelance income, monthly contributions can definitely make more sense for cash flow - just make sure you hit that $7,000 by the tax deadline. For finding a good accountant, I'd recommend looking for an Enrolled Agent (EA) who specifically advertises experience with self-employed clients. The National Association of Enrolled Agents has a "find a practitioner" tool on their website. I also found success asking in local freelancer Facebook groups - other self-employed people in your area will have great recommendations for accountants who actually understand our unique situations. You might also want to consider fee-only financial planners who can help with the bigger retirement strategy picture, not just tax prep. The confusion your current accountant had about basic SEP/Roth rules is definitely a red flag.

For the Roth IRA timing, I ended up doing a lump sum contribution early in the year once I confirmed my income would stay under the threshold. With irregular freelance income, I found it easier to just get that $7,000 locked in rather than trying to time monthly contributions with my cash flow. Plus, getting the money invested earlier gave me more time for potential growth. As for finding a good accountant, I'd recommend looking for CPAs who specifically advertise experience with self-employed clients or small business owners. The AICPA website has a "Find a CPA" tool where you can filter by specialties. I also found success asking in local freelancer Facebook groups - other self-employed folks usually have great recommendations for accountants who actually understand our unique situations. You might also want to consider someone who can help you set up a solo 401(k) down the line if your income continues to grow. It offers higher contribution limits than a SEP IRA and more flexibility for things like loans and Roth options.

Great question about timing! I ended up doing a mix - I made a larger lump sum contribution early in the year (around $4,000) when I had a good month, then spread the remaining $3,000 over smaller monthly contributions. The key is just making sure you hit that $7,000 max before the April deadline. Since freelance income is so unpredictable, I found it helpful to contribute more when cash flow was good rather than forcing a strict monthly schedule. For finding a better accountant, I'd recommend looking for an Enrolled Agent (EA) who specifically mentions self-employment or freelancer expertise on their website. You can search the IRS directory of EAs, and many will offer a brief consultation call to see if they're a good fit. I also found success asking in local freelancer Facebook groups - other self-employed folks usually have great recommendations for accountants who actually understand our unique situations. The difference in service quality was night and day once I switched!

Great questions! I ended up doing a lump sum contribution to my Roth IRA in January since I had some cash flow from a big project that finished in December. The earlier you get that money in, the more time it has to grow tax-free. But if your income is irregular, monthly contributions can work well too - just make sure you're on track to hit the $7,000 max before the April deadline. For finding a good accountant, I'd recommend looking for an Enrolled Agent (EA) who specifically mentions working with freelancers or self-employed clients on their website. EAs have to pass IRS exams and maintain continuing education, so they tend to be more up-to-date on tax law than regular CPAs. You can search the IRS directory at irs.gov for EAs in your area. I also found success asking in local freelancer Facebook groups - other independent contractors usually have good recommendations for tax professionals who actually understand our unique situations.

Great questions! I ended up doing a lump sum contribution to my Roth IRA early in the year (around February) once I had a good sense of my projected income. With irregular freelance income, I found it easier to just get the Roth maxed out early rather than trying to do monthly contributions - especially since you never know if you might have a really good month that pushes you over the income threshold. For finding a good accountant, I'd recommend looking for CPAs who specifically advertise that they work with self-employed clients or small business owners. The AICPA website has a "Find a CPA" tool where you can filter by specialty. I also asked in some freelancer Facebook groups and got great recommendations from people in similar situations. Look for someone who asks detailed questions about your business structure and retirement goals during the initial consultation - that's usually a good sign they know what they're doing. A good self-employment-focused CPA should be able to explain the SEP vs. Roth situation clearly and help you optimize your overall tax strategy, not just prepare your return.

Great questions! I ended up doing a lump sum contribution to my Roth IRA in January since I had some cash flow from a big project that finished in December. But honestly, with irregular freelance income, spreading it out monthly might be safer - you can always adjust if a month is tight. For finding a good accountant, I'd recommend looking for someone with an EA (Enrolled Agent) designation who specifically mentions working with freelancers or self-employed clients on their website. The NAEA (National Association of Enrolled Agents) has a good directory search. I also found it helpful to ask other freelancers in my field for referrals - someone who already works with people in similar situations will understand the nuances of irregular income and multiple retirement accounts. Don't be afraid to interview a few accountants before choosing. A good one should be able to clearly explain the SEP vs Roth rules and help you develop a strategy for maximizing both based on your income projections.

Great questions! For the Roth IRA timing, I actually found it worked better to make the full contribution early in the year (January/February) when I had a good cash flow month. With irregular freelance income, it's so easy to spend that money on other things if you wait. Plus, getting it invested earlier means more time for potential growth. For finding a good accountant, I'd recommend looking for CPAs who specifically advertise experience with self-employed clients or small business owners. I found mine through referrals from other freelancers in my field. The National Association of Tax Professionals has a directory where you can filter by specialization. Also, during your initial consultation, ask them directly about SEP vs. Roth IRA rules - if they seem uncertain or give you conflicting information like your current accountant did, keep looking. A good self-employment focused CPA should immediately understand that SEP and Roth contributions are separate limits and be able to explain the 20% vs 25% calculation without hesitation. It's worth paying a bit more for someone who really knows this stuff inside and out.

Great questions! When I was in your situation, I found it worked best to contribute to the Roth IRA as soon as I had cash flow available, rather than waiting to spread it out. Since freelance income is so unpredictable, I wanted to lock in that $7,000 contribution early in the year before any unexpected expenses or income dips could derail my plans. For finding a good accountant, I'd recommend looking for CPAs who specifically advertise experience with "self-employed" or "1099 contractors" rather than just general tax prep. The AICPA has a directory where you can search by specialty. I also found success in freelancer Facebook groups and subreddits - other freelancers often have great recommendations for accountants who actually understand our unique situations. You might also want to ask potential accountants specific questions during consultations, like "Can I contribute to both a SEP IRA and Roth IRA in the same year?" If they hesitate or seem unsure, that's probably a red flag. A good small business accountant should know these rules cold.

Great questions! I ended up making the full Roth contribution in January since I had some decent cash flow from a project that wrapped up in December. Getting that money working for the full year made sense, plus it gave me peace of mind knowing I'd locked in my Roth eligibility early before my income potentially bounced back. But honestly, monthly contributions work just fine too, especially with irregular freelance income. The key is just making sure you hit that $7,000 by the tax deadline. I set up automatic transfers whenever I got paid from clients - maybe $500-800 per month depending on what came in. For finding a better accountant, I'd recommend looking for CPAs who specifically advertise experience with self-employed clients or small business owners. The AICPA website has a "Find a CPA" tool where you can filter by specialties. I also asked in local freelancer Facebook groups and got some solid recommendations. You want someone who immediately knows the SEP vs. Roth rules without having to research it - that's pretty fundamental stuff for anyone working with independent contractors.

Great questions! I actually did spread out my Roth IRA contributions monthly rather than doing a lump sum early in the year, mainly because my freelance income was so unpredictable. I set up automatic monthly transfers of about $580 ($7,000 ÷ 12 months) which helped smooth out the cash flow impact and gave me some flexibility if I had a really lean month. The downside is you lose some potential growth by not getting all $7,000 invested early, but for me the cash flow management was more important. Plus, dollar-cost averaging meant I was buying at different market points throughout the year. For finding a better accountant, I'd recommend looking for someone who specifically advertises experience with self-employed clients or freelancers. The AICPA has a directory where you can search by specialty. I also asked in some freelancer Facebook groups and got great recommendations from people in similar situations. Interview a few candidates and ask specific questions about SEP IRAs, quarterly estimated taxes, and business expense deductions - you'll quickly figure out who knows their stuff!

Great questions! I ended up doing a lump sum contribution to my Roth IRA early in January since I wanted to maximize the time in market for tax-free growth. With irregular freelance income, I found it easier to just get the Roth maxed out first rather than trying to coordinate monthly contributions with my variable cash flow. For finding a better accountant, I'd recommend looking for CPAs who specifically advertise experience with self-employed clients or small business owners. The AICPA has a directory where you can filter by specialties. Also check local freelancer groups on Facebook or LinkedIn - other freelancers often have great recommendations for accountants who actually understand our unique situations. When interviewing potential accountants, ask them specifically about SEP IRA vs Solo 401(k) options and Roth contribution strategies. If they can't clearly explain the differences and how they apply to your situation, keep looking. A good accountant for freelancers should be proactively suggesting tax-advantaged retirement strategies, not confused by basic questions about them!

Great questions! I ended up doing a lump sum contribution to my Roth IRA in January since I wanted to maximize the time in market, but honestly either approach works fine. With irregular freelance income, spreading it out monthly might actually be easier from a cash flow perspective - you could set up automatic contributions and adjust if you have a lean month. For finding a good accountant, I'd recommend looking for someone who specifically advertises experience with self-employed clients or small business owners. The AICPA has a directory where you can filter by specialty. I also found success asking in local freelancer Facebook groups - other freelancers usually have great recommendations for accountants who actually understand our unique situations. Another option is to look for Enrolled Agents (EAs) rather than just CPAs. They specialize in tax law and often have more experience with complex self-employment scenarios. The National Association of Enrolled Agents has a "find an EA" tool on their website that lets you search by location and specialty. The key is interviewing them before hiring - ask specific questions about SEP IRAs, estimated quarterly taxes, and business expense deductions. If they seem unsure about basic self-employment tax strategies, keep looking!