Is contribution limit to Sep-IRA & reg IRA connected. If you put more in one do you have to put less in other

Question

As a self-employed sole employee are the contribution limits to both accounts ties to one another? If you fund one to the max, can you still fund the other to the max?

Answer 1

You are allowed to open both. SEP is limited to 20% of earned income, or $45,000. Whichever is less. You can also put $4,000 in a Roth, $5,000 if 50 or over. Both Roth limits go up $1,000 for 2008.

Answer 2

yes you can and should max both out!!!