The rules for rollovers regarding SEP IRA plans are the same as for a traditional IRA. Generally you may rollover your SEP funds into most other IRAs and qualified plans. You may also choose to rollover funds from other retirement plans into your SEP account.
You have three options on how to complete your rollover:
- Direct rollover - You can ask your plan administrator to make the payment directly to another retirement plan or to an IRA. Contact your plan administrator for instructions. No taxes will be withheld from your transfer amount.
- Trustee-to-trustee transfer - You can ask the financial institution holding your IRA to make the payment directly from your IRA to another IRA or to a retirement plan. No taxes will be withheld from your transfer amount.
- 60-day rollover - If a distribution from an IRA or a retirement plan is paid directly to you, you can deposit all or a portion of it in an IRA or a retirement plan within 60 days. Taxes will be withheld from a distribution from a retirement plan so make sure that you have other funds available to roll over the full amount of the distribution.
- What is a Simplified Employee Pension Plan (SEP)?
- How much can I contribute to an SEP?
- Who can participate in a SEP plan?