Q. According to my tax preparer, I am unable to contribute to either my Roth IRA or my SEP. This really upsets me as I had already funded my Roth IRA. What do I do now? KF, Arkansas
A. It's unfortunate, but there are times, especially in this economy, where if your self-employed income shows a loss, you are barred from making any type of contribution. Remember, you must have earned income in order to make any type of retirement contribution.
Your only recourse is to call your brokerage house and ask them to apply your contribution to 2011 instead of 2010. Hopefully, this will be a better year for you!