sep ira to traditional ira
Taxpayer retired doctor makes some consulting income each year.
Can he open a SEP-IRA and make a contribution? then can he move the funds from SEP to an existing traditional rollover IRA shortly thereafter or do the funds have to stay in the SEP-IRA as long as he is self-employed? (He may be making SEP contributions in future years.)
Is there any age limit on SEP-IRA contributions? (What if he is over 70-1/2?)
Thank you in advance,
Art Dicker
Permalink Submitted by Alan - IRA critic on Mon, 2015-03-23 17:54
Art,a SEP can be established and there is no age limit for SEP IRA contributions, but RMDs must also begin at 70.5. The SEP IRA balance can be transferred out of the SEP IRA into an existing TIRA (or Roth IRA conversion) without any holding period.