SEP IRA
Can you do an in-service rollover from a SEP IRA into a traditional IRA? Have a prospective client that has a current SEP IRA that we would like to rollover into an IRA here while he is still working and want to know if this is possible. If so, can he still contribute and participate in the SEP IRA at work after the inservice rollover?
Permalink Submitted by Alan - IRA critic on Mon, 2021-01-11 20:52
Yes, as long he is not subject to RMDs and this is not an old SAR SEP, SEP balances can be entirely rolled over to an IRA anytime the SEP owner wishes. If subject to RMDs, the RMD must be distributed and then the balance can be rolled over.