SEP IRA closure time period required?
How long does a business need to keep their SEP IRA open before they close it and roll it over to a traditional IRA? It was opened April, 2016 some 21 months ago. I recall a long time ago there was a minimum two year rule before closing? The purpose of closure is that it is more convenient to use a 401k.
Permalink Submitted by William Tuttle on Tue, 2018-01-09 08:02
You can actually roll over assets from a SEP IRA as soon as you make the contribution. There really isn’t any need to close a SEP IRA. It can remain open indefinitely. It is 5305-SEP IRA contributions that can not be made the same year as a 401k. Even if you request a custodian to close a SEP IRA after rolling over all assets, many custodians do not actually close the account. They let them remain until their inactive zero balance cleanup happens.