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Learning, Sharing, and Teaching => Investor Alley => Topic started by: px4shooter on March 31, 2018, 08:40:48 AM

Title: Starting a Simple IRA and a Sep-IRA mistake
Post by: px4shooter on March 31, 2018, 08:40:48 AM

My spouse is self employed. I maxed out her SEP contribution, based upon my estimate for 2018 income. Then I learned about the Simple IRA, which will allow us to invest quite a bit more (still investing more, but just looking at the tax/income reduction benefit).

Is there a way to pull the SEP contribution and roll it into the Simple? I am set up with Vanguard and just sent in the Simple account set-up. The guy said to call back once it was approved, but didn't seem very knowledgeable about transferring funds.

Title: Re: Starting a Simple IRA and a Sep-IRA mistake
Post by: MDM on March 31, 2018, 09:20:44 AM

https://www.irs.gov/pub/irs-tege/rollover_chart.pdf is a good starting point.

Title: Re: Starting a Simple IRA and a Sep-IRA mistake
Post by: BTDretire on March 31, 2018, 10:25:33 AM

Why take the money out of the SEP?
You can do both a SEP and an IRA.
https://www.nerdwallet.com/blog/investing/sep-ira-traditional-contribution-limits/

Title: Re: Starting a Simple IRA and a Sep-IRA mistake
Post by: TomTX on March 31, 2018, 07:43:27 PM

Quote from: BTDretire on March 31, 2018, 10:25:33 AM

Why take the money out of the SEP?
You can do both a SEP and an IRA.
https://www.nerdwallet.com/blog/investing/sep-ira-traditional-contribution-limits/

He was talking about SEP and SIMPLE, both are employer plans.

Not SEP + Traditional Personal IRA.

However, it looks like you are correct.

https://www.irs.gov/retirement-plans/how-much-can-i-contribute-to-my-self-employed-sep-plan-if-i-participate-in-my-employers-simple-ira-plan