First Republic Private Wealth Management includes First Republic Trust Company; First Republic Trust Company of Delaware LLC; First Republic Investment Management, Inc., an SEC-Registered Investment Advisor; and First Republic Securities Company, LLC, Member FINRA/ SIPC.
Contributions to a traditional IRA reduce your AGI (Adjusted Gross Income) and lower your taxes. Your contribution must be made by April 15 following the tax year to be deductable. Contributions to a Roth IRA do NOT reduce AGI and do not lower your current taxes.
To do so, you basically close your existing IRA and transfer its funds to the SEP IRA. Your existing IRA cannot be a Roth plan. A traditional IRA and a SEP IRA are both tax-deferral plans; you deduct your contributions from income for tax purposes, but you will pay taxes when you withdraw the funds at retirement.ou can claim a tax deduction for up to $5,000 a year contributed into a traditional IRA, but you can usually defer up to 10 percent of your pay in a SEP.