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Date posted: August 24, 2007

May a self-employed person with an SEP also establish another plan?

In Your Income Tax, you state that you may establish a separate money purchase plan to supplement a profit-sharing plan. May a self-employed person with an SEP also establish another plan?

— Submitted by Shirley

The quick answer here is yes. It is quite possible to establish both plans. But this can get very messy. We recommend that you talk with your plan administrator if you are interested in doing this.