SEP IRA Termination
When an employer terminates a SEP IRA plan, do participants needs to direct transfer the funds into a Traditional IRA? Or may the SEP IRA funds stay in the original account going forward, even if the “plan” has ended?
Is it a best practice to move the funds into a Trad. IRA when the plan ends?
Permalink Submitted by Alan - IRA critic on Thu, 2017-06-01 15:40
The funds can remain in the SEP IRA. A SEP IRA actually is a traditional IRA with exceptions for contributions, Once the contributions have been made the distribution rules are the traditional IRA distribution rules.