SEP IRA with her own company
Client has SEP IRA with Fidelity under her own company that she has half ownership. She is 56 now.
Questions:
- can she transfer her SEP-IRA over to a wealth advisor for professional management (does not want to keep doing it herself)?
- or does she have to wait until she is 59 1/2 as with 401k’s?
- If she is allowed to transfer to a wealth advisor, can she still contribute each year to her SEP as she is not retiring?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2024-07-29 11:39
The manager should be able to manage the account without a transfer to a new SEP account. But if the manager requires a new SEP account custodian, the current balance could be directly transferred to a new SEP IRA with the new custodian. Client would be getting a 5498 from each custodian for the year of transfer.
Neither of the above would be reportable distributions, so age 59.5 is not an issue.
SEP contributions can continue.
Another option would be to transfer the current balance to a traditional IRA at the new custodian, and just continue contributions to the current SEP IRA. Wealth manager would be working only with the TIRA that would hold most of the balance. When new SEP contributions are made to the old SEP, they could also be transferred to the IRA periodically, depending on how often the SEP contributions are made.