Possible to combine SEP IRA with standard IRA?

soupcxan · 07-15-2006, 08:31 PM

A relative has a SEP IRA account at brokerage A. The majority of her accounts, including a rollover IRA, are at brokerage Z. She wants to move the SEP IRA to brokerage A in order to consolidate accounts and simplify things. The question is, can the funds from the SEP IRA be combined with the existing rollover IRA, or do they have to be transferred into a separate new account?

So far, my research indicates that this is allowed, the only downside is that once you combine a SEP and a rollover IRA, you are no longer permitted to move the rollover portion into a new employer's retirement plan. But this isn't an issue for my relative.

TromboneAl · 07-16-2006, 10:19 AM

Yes, it is possible. I combined my IRA and SEP-IRA funds. In the past it wasn't allowed, and then they changed the rules.

Brat · 07-16-2006, 12:08 PM

If she is still making contributions to the SEP I wouldn't merge the accounts. Otherwise, OK.

07-15-2006, 08:31 PM	#1
soupcxan Full time employment: Posting here. Join Date: Aug 2004 Posts: 754	Possible to combine SEP IRA with standard IRA? A relative has a SEP IRA account at brokerage A. The majority of her accounts, including a rollover IRA, are at brokerage Z. She wants to move the SEP IRA to brokerage A in order to consolidate accounts and simplify things. The question is, can the funds from the SEP IRA be combined with the existing rollover IRA, or do they have to be transferred into a separate new account? So far, my research indicates that this is allowed, the only downside is that once you combine a SEP and a rollover IRA, you are no longer permitted to move the rollover portion into a new employer's retirement plan. But this isn't an issue for my relative.

07-16-2006, 10:19 AM	#2
TromboneAl Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 4,117	Re: Possible to combine SEP IRA with standard IRA? Yes, it is possible. I combined my IRA and SEP-IRA funds. In the past it wasn't allowed, and then they changed the rules. __________________ - Al -- Always serious, never joking. No, wait. Never serious... Always... I forget.

07-16-2006, 12:08 PM	#3
Brat Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,828	Re: Possible to combine SEP IRA with standard IRA? If she is still making contributions to the SEP I wouldn't merge the accounts. Otherwise, OK. __________________ Duck bjorn.

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