SEP-IRA inactive – must close?
My client has an inactive SEP-IRA. She has been contributing to her Simple IRA for many years but the SEP-IRA still has some money in it. Her business terminated last year. I was going to roll her Simple IRA into her SEP-IRA but questioned if the IRS would require closing the SEP-IRA due to it inactivity. Will she eventually have to roll the SEP IRA into an IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2024-05-01 18:00
If client wants to consolidate accounts, the inactive SEP IRA balance could be transferred into the SIMPLE IRA, or if client already has a TIRA, into the TIRA.
Permalink Submitted by Mary K. Dean on Thu, 2024-05-02 17:06
Thanks Alan. My interpretation of your comment is that both the SEP IRA and Simple IRA can be kept indefinitely even though the business has been closed?
Permalink Submitted by Alan - IRA critic on Thu, 2024-05-02 18:02
Yes, they can be if desired.