ROLLOVER FROM TRADITIONAL IRA TO SEP-IRA CAN IT BE DONE?
I am preparing a return for a client that received a 1099R with an early distribution code, 1. He has advised me that this was an IRA that he rolled over to his SEP-IRA. I have that paperwork.
I always thought that you could do a rollover from a SEP-IRA to a Traditional IRA, but not the other way around (from a Traditional IRA to a SEP-IRA.)
Does anyone have experience with a transaction such as this?
Respectfully yours,
Bernard A. Fagnani CPA/PFS
Permalink Submitted by Denise Appleby on Sat, 2009-03-14 18:27
You can do a rollover from a traditional IRA to a SEP IRA.
Think of a SEP as a traditional IRA and apply the same set of rules to both. A SEP is just a traditional IRA for which the registration has been amended to show that the account satisfied requirements to receive SEP contributions. Other than receiving the SEP contributions, the same set of rules apply to both