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SEP contribution, 403(b) and 457 plan

Technical topics regarding tax preparation.
#1
JoJoCPA  
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347
Joined:
1-Sep-2019 2:57pm
Location:
Massachusetts
Client is a doctor at a hospital. For 2021, he contributed $19,500 to the hospital's 403(b) plan and $19,500 to the hospital's 457 plan. The hospital matched $2,224 to his 403(b) for 2021. He also has $171K of self-employment income and has a SEP-IRA. He would like to contribute the max of $33K to the SEP-IRA.

I think this is okay. Please correct me if I'm wrong. The total 403(b) contributions of $21,724 would count towards the maximum SEP contribution of $58K limit, since he considered to be the owner of the 403(b) plan. But a SEP-IRA contribution of $33K would still be under the difference ($58K less $21,724) of $36,276. So he can make the full $33K SEP contribution for 2021.

The 457 contributions are not factored into the maximum SEP contribution allowable as that plan is subject to separate limits.

Do I have this correct?
 

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