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I am an independent contractor and get the majority of my income as 1099. I have both an SEP and Roth IRA that I have contributed to in the past, but I would really like to ramp up my retirement savings this year.

I know my SEP contribution limit is 25% of my income and the Roth limit is $5,500 for 2014. I have yet to contribute anything to either account for 2014. Am I allowed to contribute the max to my Roth and then also make an SEP contribution in addition to that?

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According to the IRS SEP Plan FAQ you are allowed to max out both an SEP IRA as a self employed individual and a Roth or Traditional IRA.

http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-SEPs-Contributions

A SEP-IRA is a traditional IRA that holds contributions made by an employer under a SEP plan. You can both receive employer contributions to a SEP-IRA and make regular, annual contributions to a traditional or Roth IRA. Employer contributions made under a SEP plan do not affect the amount you can contribute to an IRA on your own behalf.

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Example 2: Nancy, age 45, is the owner and sole employee of JJ Investment Advisors. Nancy contributes the maximum allowable amount to her SEP-IRA for 2014, or $52,000. Nancy may also make regular, annual IRA contributions to her SEP-IRA, if her SEP-IRA allows this, or contribute to her Roth IRA at XYZ Investment Co. Her total traditional IRA and Roth IRA contributions cannot exceed $5,500 for 2014 and may be made in addition to her SEP contributions.

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    However, the amount that can be contributed to a Roth IRA (as well as the amount that can be deducted as a contribution to a Traditional IRA) is limited (or even reduced to 0) for taxpayers with large AGI. The numbers vary depending on whether the taxpayer is single or married and filing jointly with spouse or married and filing separately. Whether the spouse is covered by a pension plan or a participant in a 401k plan can also have some consequences in this regard. – Dilip Sarwate Mar 10 '15 at 14:21

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