billfgrady Posted October 16, 2009 Posted October 16, 2009 SEP-IRAs are treated the same as traditional IRAs for required minimum distribution purposes, right? In other words, the required beginning date is April 1 of the year following the year in which the participant turns 70 1/2. I presume that it does not matter if the participant is still employed by the employer that sponsors the SEP-IRA (and is not a five-percent owner), as it would if dealing with a participant in a qualified plan under Treas. Reg. 1.401(a)(9)-2, Q&A-2(a).
jevd Posted October 16, 2009 Posted October 16, 2009 You are correct. SEPs are funded through Traditional IRAs. Onces the cotributions are made by the employer, all Traditional IRA distribution rules apply. JEVD Making the complex understandable.
Guest Sieve Posted October 16, 2009 Posted October 16, 2009 The MRD rules for IRAs are at Treas. Reg. Section 1.408-8. The treatment of SEPs as IRAs is in Treas. Reg. Section 1.408-8, Q&A-2.
masteff Posted October 19, 2009 Posted October 19, 2009 See also IRS Publication 560, page 8, bottom of 2nd and top of 3rd columns: http://www.irs.gov/pub/irs-pdf/p560.pdf Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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