Can tIRA or 401(k) assets be rolled into a SEP-IRA?

#2 02-22-2006, 12:31 PM

"Rich Carreiro" <rlcarr[at]animato.arlington.ma.us> wrote :

- quote -

> A relative has written a book ("Designing Interfaces" from
> O'Reilly) and wants to open a SEP-IRA to get some additional
> tax-deferral and a current-year deduction.
> However, for tax year 2005, the net income from writing only
> supports around a $600 contribution (as the book was
> released so late in the year). While her broker of choice
> (Fidelity) does offer no-fee, no-minimum SEP-IRA accounts,
> pretty much every mutual fund one would want to invest in
> has a minimum higher than that.
> Now, she has trad IRAs and a 401(k) from a former employer.
> Can the tIRA or the old 401(k) money (or both) be rolled
> into the SEP-IRA, thus getting the account assets up quickly
> and thus making more investments available?
> Or can SEP-IRAs only take annual contributions and rollovers
> from other SEP-IRAs?

In the case of a self-employed person, a SEP is simply a way
of getting contributions into a traditional IRA. I have
heard that there are custodians who won't take SEP
contributions into an account that isn't specifically
labeled a SEP, but I also know for a fact that there are
custodians, Ameritrade for one, who couldn't care less.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#1 02-17-2006, 05:45 AM

- quote -

> However, for tax year 2005, the net income from writing only
> supports around a $600 contribution (as the book was
> released so late in the year). While her broker of choice
> (Fidelity) does offer no-fee, no-minimum SEP-IRA accounts,
> pretty much every mutual fund one would want to invest in
> has a minimum higher than that.

Check the prospectuses carefully. Several that I looked at
that had a $2500 minimum initial purchase had a $500 minimum
for SEP-IRA accounts.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

02-16-2006, 06:21 PM

Rich Carreiro wrote:

- quote -

> A relative has written a book ("Designing Interfaces" from
> O'Reilly) and wants to open a SEP-IRA to get some additional
> tax-deferral and a current-year deduction.
> However, for tax year 2005, the net income from writing only
> supports around a $600 contribution (as the book was
> released so late in the year). While her broker of choice
> (Fidelity) does offer no-fee, no-minimum SEP-IRA accounts,
> pretty much every mutual fund one would want to invest in
> has a minimum higher than that.
> Now, she has trad IRAs and a 401(k) from a former employer.
> Can the tIRA or the old 401(k) money (or both) be rolled
> into the SEP-IRA, thus getting the account assets up quickly
> and thus making more investments available?

Yes to both.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#-1 02-15-2006, 02:37 AM

A relative has written a book ("Designing Interfaces" from
O'Reilly) and wants to open a SEP-IRA to get some additional
tax-deferral and a current-year deduction.

However, for tax year 2005, the net income from writing only
supports around a $600 contribution (as the book was
released so late in the year). While her broker of choice
(Fidelity) does offer no-fee, no-minimum SEP-IRA accounts,
pretty much every mutual fund one would want to invest in
has a minimum higher than that.

Now, she has trad IRAs and a 401(k) from a former employer.
Can the tIRA or the old 401(k) money (or both) be rolled
into the SEP-IRA, thus getting the account assets up quickly
and thus making more investments available?

Or can SEP-IRAs only take annual contributions and rollovers
from other SEP-IRAs?

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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