Keogh to IRA

Will a Keogh automatically terminate after it is rolled over in a trustee-to-trustee transfer to a Traditional IRA or does it require a final filing of form 5500 to officially close it out? It was verified prior to rollover that all amendments are up to date with the Keogh.

If a rollover has been completed transferring the entire balance of the Keogh to an Traditional IRA, but a final form 5500 is not filed can the Keogh remain open and accept ongoing employer contributions?

My general understanding is that a SEP IRA is a less burdensome option, but a SEP and a Keogh cannot exist at the same time. Is this correct?

Thanks!



  • A rollover may be a prerequisite to filing a final Form 5500, but only the final Form 5500 terminates the plan.
  • As such, nothing prevents ongoing contributions to occur after a rollover, even if the entire balance was rolled over.
  • A 5305-SEP IRA can not be maintained for the same tax year as any qualifed plan, but a prototype SEP IRA can. However, if a Keough is being maintained anyway, it is no more burdensome to make emploer contributions there rather than a SEP IRA.

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