IRA to SEP-IRA
client has sep-ira with 43k in the account and a trad-ira with $1,000. He is still working with an income of 80k. He needs to keep the Sep open to contribute each year along with his employer.
a. Can he transfer the trad-ira into the Sep-ira?
or
b. Would that not be good to do with in the IRS rules…are there any disadvantages to the transfer?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2016-07-11 22:28
A SEP IRA is already a traditional IRA altered to accept SEP contributions. Regular IRA contributions can be made to the SEP IRA with or without SEP contributions, so another TIRA can be transferred into the SEP IRA account. No reason not to consolidate the small TIRA into the SEP IRA.