SEP Rollover to IRA or Roth

[Guest EBBeginner]

I do not know much about IRAs so I have what may seem like a pretty basic question. I read that SEPs can be rolled over to a Roth IRA but can SEPs be rolled over to a traditional IRA?

Any help would be greatly appreciated. Thank you!!

[No Name]

A SEP is an employer funded Traditional IRA. Rolling to a ROTH may trigger tax consequences.

[Guest EAS]

You have the option of moving the assets from a SEP IRA into a ROTH. This is treated as a ROTH Conversion. This is a REPORTABLE and TAXABLE event. You will recieve a 1099-R reporting the assets leaving the SEP IRA, and you will also receive a correpsonding 5498 for the ROTH reporting the assets received.

You were also correct about moving the assets from a SEP IRA to a Rollover or a Traditional IRA. This transaction is treated as a transfer (not a covnersion). This is NOT a reportable or taxable event.

There are benefits and drawbacks performing both options, but they depend upon the individual's situation and objectives.

Hope this helps.

EAS

[Appleby]

I read that SEPs can be rolled over to a Roth IRA but can SEPs be rolled over to a traditional IRA?

SEPs can be rolled or transferred to a Traditional IRA- in fact SEP contributions are made to a Traditional IRA …, any rules that apply to Traditional IRA applies to a SEP.