SEP to IRA Rollover
Could anyone tell me if you can rollover a SEP to a traditional IRA? What are the procedures and steps to do so? Thank you.
Could anyone tell me if you can rollover a SEP to a traditional IRA? What are the procedures and steps to do so? Thank you.
Permalink Submitted by Alan Spross on Mon, 2009-10-19 17:17
Actually, a SEP IRA IS a traditional IRA. Therefore, the account holder does not need to do anything because distributions are not limited and subject to the same tax rules as a traditional IRA distribution. The SEP can also be either transferred by T to T transfer to a traditional or Roth IRA (conversion), or indirectly rolled over to another traditional or Roth IRA.
A SEP IRA can also receive regular traditional IRA contributions while the SEP is active or afterwards. Active participation in the SEP IRA is considered as an employer retirement plan participation, and therefore there are income limits for deducting a traditional IRA contribution to a SEP IRA just as there are for traditional IRA contributions.