can i drop my sep ira acc and roll it over to simple ira after i set it up?

if not, can i roll it to tradition ira and then cancel sep ira so i can set up simple ira? tia

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Reply to
lisa
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You may. Set up the regular IRA and instruct custodian of Sep IRA to transfer and close out. OR, if you're maintaining the new IRA at same place, the former IRA may be able to be continued while shutting down the SEP portion. I remember when I had a KEOGH plan at one mutual fund house I instructed them simply to close it out and roll over proceeds into a newly created IRA. No problem. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

A SEP is merely a way of getting money into a traditional IRA. Once it's there it behaves as any other traditional IRA money. SIMPLE IRAs have special restrictions, so I don't think you'd want to be moving money into one except as current contributions. (I'm not sure whether it's possible to roll non-SIMPLE funds into a SIMPLE IRA or not.) You don't have to "cancel" anything in order to set up a SIMPLE. You just cannot contribute to both a SEP and a SIMPLE based on the same earnings. See IRS Publications 560 and 590.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

To answer your original question, I do not believe you can roll a SEP into a SIMPLE nor can you roll an IRA into a SIMPLE. Someone please confirm this. Why are you looking to change plans? What are you looking for in a plan that the SEP does not provide but a SIMPLE does? Maybe there are better alternatives.

Reply to
kastnna

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