SEP-IRA inactive – must close?

Submitted by Mary K. Dean on Wed, 2024-05-01 17:17

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?



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.

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?

Submitted by Alan - IRA critic on Thu, 2024-05-02 18:02

Yes, they can be if desired.

Add new comment

Log in or register to post comments