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RMDs and SEPs


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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).

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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.

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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.

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