Can i combine a regular IRA with a SEP IRA?

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oldguy
Posts: 85
Joined: Sat Dec 13, 2014 12:40 pm

Can i combine a regular IRA with a SEP IRA?

Post by oldguy » Wed May 16, 2018 2:42 pm

I'll soon turn 62 years of age and don't plan to contribute more to my IRAs.

I'd like to combine some smaller regular IRAs with my larger SEP IRA - if it won't cause potential troubles with the IRS?

Anyone know if that's allowed?

oldguy
Posts: 85
Joined: Sat Dec 13, 2014 12:40 pm

Re: Can i combine a regular IRA with a SEP IRA?

Post by oldguy » Wed May 16, 2018 3:16 pm

Looks like I'm finding answers here https://www.irahelp.com/slottreport/you ... parate-ira
and here https://www.investopedia.com/ask/answer ... tional.asp
and here https://budgeting.thenest.com/can-exist ... 22299.html
and the answer is it appears to be allowed - which is good news to me.

Alan S.
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Location: Prescott, AZ

Re: Can i combine a regular IRA with a SEP IRA?

Post by Alan S. » Wed May 16, 2018 3:23 pm

You can consolidate them. Request a direct trustee transfer into the surviving IRA account. As a non reportable transfer you will not get a 1099R and will not need to report the transfer on your tax return. If you will not be making any further SEP IRA contributions, transfer the SEP balance into one of the other accounts.

oldguy
Posts: 85
Joined: Sat Dec 13, 2014 12:40 pm

Re: Can i combine a regular IRA with a SEP IRA?

Post by oldguy » Wed May 16, 2018 4:02 pm

Thanks Alan

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Rainier
Posts: 1357
Joined: Thu Jun 14, 2012 5:59 am

Re: Can i combine a regular IRA with a SEP IRA?

Post by Rainier » Thu May 17, 2018 5:35 am

Alan S. wrote:
Wed May 16, 2018 3:23 pm
You can consolidate them. Request a direct trustee transfer into the surviving IRA account. As a non reportable transfer you will not get a 1099R and will not need to report the transfer on your tax return. If you will not be making any further SEP IRA contributions, transfer the SEP balance into one of the other accounts.
If you look at the IRS chart I still think they may consider this a Rollover and you might get a 1099-R, but no tax would be due.

This is a useful PDF from the IRS: https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

I don't have specific experience going from SEP to Traditional so cannot say with certainty what will happen. In any case, you absolutely can do it.

Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: Can i combine a regular IRA with a SEP IRA?

Post by Spirit Rider » Thu May 17, 2018 10:23 am

Rainier wrote:
Thu May 17, 2018 5:35 am
Alan S. wrote:
Wed May 16, 2018 3:23 pm
You can consolidate them. Request a direct trustee transfer into the surviving IRA account. As a non reportable transfer you will not get a 1099R and will not need to report the transfer on your tax return. If you will not be making any further SEP IRA contributions, transfer the SEP balance into one of the other accounts.
If you look at the IRS chart I still think they may consider this a Rollover and you might get a 1099-R, but no tax would be due.

This is a useful PDF from the IRS: https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

I don't have specific experience going from SEP to Traditional so cannot say with certainty what will happen. In any case, you absolutely can do it.
That is a rollover chart. See 2Only one rollover in any 12-month period.

SEP IRAs and traditional IRAs have different contribution requirements, but once the contributions are made there are no differences in distributions. There is no difference between a traditional IRA trustee <-> traditional IRA trustee transfer and a SEP IRA trustee <-> traditional IRA trustee transfer.

A transfer is not a rollover and should not generate a 1099-R. Alan S. is seldom if ever wrong on rollover/transfer issues.

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