The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Laserjet3051 on May 11, 2016, 08:28:46 AM
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Hi:
I'd like to consolidate my IRA holdings across multiple brokerages into a single SEP-IRA at Vanguard. Some of these holdings will be coming from a tIRA using an in-kind transfer mechanism. I am a single member LLC/s-corp and fund that SEP-IRA. My question is if down the road, I terminate the business, and therefore lose the capacity for employer funding of the SEP-IRA can I then do an in-kind transfer of my SEP-IRA holdings back to a tIRA where as an individual, I can then make contributions?
In essence, I would be moving funds from a tIRA into a SEP-IRA and then back to a tIRA, all transfers being in-kind. Are there limits on such volleying? Not trying to be negative on the future prospects of my business but just planning for possible future outcomes where the SEP-IRA may longer be a viable mechanism due to business termination.
I couldnt find any IRS guidance on limits for SEP-IRA-->tIRA transfers or the converse. My guess is that there are few limits or regulations on frequency, directionality, or size of such transfers. Is this correct? I want to take advantage of the larger annual max contribution limits of the SEP-IRA, at leadt for now, while I am operating a profitable business.
Thanks for your attention.