Can an indirect rollover be done from a SEP-IRA to a 401k?
If a $100,000 distribution has been taken from a SEP-IRA, can it be rolled into a 401k plan within 60 days and avoid taxes/penalties?
If so, would there be a problem in doing that if only 6 months prior a distribution of the same $100,000 was taken from a different SEP-IRA and utilizing the 60 day rollover rule, put into a new SEP-IRA (the one in the initial question)?
Thank you,
Steve
Permalink Submitted by Alan - IRA critic on Fri, 2018-07-06 23:30
If the 401k plan will accept rollovers from IRA accounts, the rollover can be done either by direct rollover or 60 day rollover. A 60 day rollover does not count against the one rollover per 12 month limit because that limit only applies to IRA to IRA rollovers. So, no problem with the IRS but your 401k must accept rollovers from IRA accounts.