Here is how the SRS is computed for a retiree whose MRA is age 56 and who retires under FERS with 30 years of civilian service and an estimated age 62 Social Security benefit of $1200 a month. 1  The FERS service is divided by 40. 2  The age 62 Social Security benefit is multiplied by the fraction derived above.
The IRS allows you to combine money in a SEP IRA with money in a 401(k) plan, either by moving the SEP IRA money to the 401(k) or the 401(k) money to the SEP IRA.
Contributions can be made to a SEP-IRA after age 70 1/2, and distributions are subject to the same rules that govern traditional deductible IRA distributions. It may seem strange, but if you continue to work after age 70 1/2, youâll have to take taxable withdrawals in the same year you make deductible contributions.f Roger establishes an individual 401(k) plan instead of a SEP-IRA, he could contribute up to $34,440 for 2008. In addition, he could contri-bute $6,000 to his own Roth IRA and $6,000 to a deductible IRA in Katieâs name. In this case, retirement savings can be as high as $46,440 â nearly 62 percent of Rogerâs income.