RMDS while working/ SEP IRA
We have a potential new client. They are self employed and still working. All of their retirement assets are in their SEP IRA’s.
Are they required to take RMD’s from a SEP IRA if they are still working? Or are they able to defer taking RMD’s until they retire from their self employed practices?
Permalink Submitted by Jose Morales on Mon, 2019-07-29 22:13
The contributions being made are SEP contributions, the plan receiving the contribution is just a regular Traditional IRA. Therefore once the funds are in the account they are treated the same as any other Traditional IRA, inlcuding being subject to RMD rules. Whether the owner is still eligible to make SEP contributions to the Traditional IRA will not change the rules that the funds are subject to once in the Traditional IRA.