Author Topic: SEP-IRA for Spouse and/or Side Hustle?  (Read 338 times)


  • 5 O'Clock Shadow
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SEP-IRA for Spouse and/or Side Hustle?
« on: September 12, 2017, 08:08:27 AM »
Here's our situation.  I am a W-2 employee making approx $120-130k/year.  My wife stays home, but runs a home business that nets barely a few hundred dollars a year.  We file jointly.

I also run a side hustle that may make about $10k this year, and may grow after that.

Presently, I max out the 401k contribution at work and on top of that contribute the maximum to Roth IRA for both myself and my spouse.  This allows us to stash away $29k a year ($18k for 401k, $5.5k each for Roth IRA) in tax advantaged accounts.

I have three questions:

(1) Is it possible to use my income as a basis to stash away funds in a SEP-IRA set up for my spouse?  I ask because the SEP-IRA has certain limits based on income earned by the business.  My wife's business does not earn that much, but I do, and I was wondering if we could use my income to define the contribution limits since we file jointly.

(2) Is it possible for me to set up a SEP-IRA for my side hustle?

(3) Would I be able to set up these SEP-IRA funds IN ADDITION TO our existing contributions to my 401k and our Roth IRAs?  Or, in other words, would these SEP-IRAs eclipse our present situation?

Wondering if anyone knows the answers to these questions.  Thanks.