SEP IRA contribution restriction

[flashsg]

I currently have a traditional IRA. Being self employed with no employees over the last few years I have not been allowed to contribute to my IRA fund. Reason: due to my net income. I would have to pay an excess contribution penalty and tax. Even though I contributed to my Traditional IRA from a built up savings account over the years.

My question is this, if I rollover my traditional IRA to a SEP IRA will I have the same problem if my net income is low again this year?

What is my best option to save for retirement?

[Petunia 100]

So, you're saying you are showing a net loss for your business?

You must have earned income to contribute to a SEP, a traditional, or any other tax-advantaged retirement account. Earned income means net profit from your business, W-2 income, or alimony.