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Rollover from SEP IRA to qualified plan


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I've always thought of a SEP as a vehicle to get money into an IRA. 408(k) starts out...

408(k) Simplified Employee Pension Defined. -

408(k)(1) In general. -For purposes of this title, the term “simplified employee

means an individual retirement account* or individual retirement annuity* -

*these are defined in 408(a) and 408(b).

So, I think the account that is being rolled over is in fact a 408(a) or 408(b) account.

Ed Snyder

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I've always thought of a SEP as a vehicle to get money into an IRA. 408(k) starts out...

408(k) Simplified Employee Pension Defined. -

408(k)(1) In general. -For purposes of this title, the term “simplified employee

means an individual retirement account* or individual retirement annuity* -

*these are defined in 408(a) and 408(b).

So, I think the account that is being rolled over is in fact a 408(a) or 408(b) account.

You are right Bird.

Remember too, that if after-tax amounts (from nondeductible IRA contributions and rollovers of after-tax amounts from QPs/403(b)) are in the SEP, those amounts cannot be rolled over to the QP. And, if it is an RMD year for the participant, the RMD should be taken before the rollover is initiated.

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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