401k Direct Transfer to SEP-IRA
Please confirm that client can directly transfer their old 401kplan to a SEP-IRA. Or, does client need to open a traditional IRA to deposit the 401k account? And then combine the IRA into the SEP-IRA?
Please confirm that client can directly transfer their old 401kplan to a SEP-IRA. Or, does client need to open a traditional IRA to deposit the 401k account? And then combine the IRA into the SEP-IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2025-06-06 19:06
A direct rollover can be made directly to the SEP IRA. A SEP IRA is nothing more than a traditional IRA with special contribution rules. Rollovers and distribution rules are the same as a TIRA, except that a QCD cannot be made from an on going SEP IRA (still receiving SEP contributions).