How To Transfer An SEP

The process of how to transfer an SEP is not a complicated one. A Simplified Employee Pension, or SEP, can be transferred to a traditional IRA account or to another SEP IRA. The account that you are transferring your SEP to can already be established, or can be one you are just now opening.

  1. When you want to transfer an SEP, the first thing to determine is the type of retirement account you want to move your funds into. If this account is a new one, fill out the appropriate paperwork in order to establish it. You can also use an existing account, if you prefer.
  2. Call your SEP account administrator and have them initiate the transfer. If you are only transferring a portion of your SEP, make sure to tell the administrator exactly how much you want to transfer to the new account. If you are moving all of the funds, make sure they are aware to close your SEP altogether.
  3. There is no limit to how much you can transfer from your SEP to another retirement account. The funds will remain in a retirement account, so there is no IRA restriction on how much you can transfer. Also, since you are not withdrawing the funds, there are no tax issues or penalties to worry about.
  4. Once you have done all the requirements for the transfer, make sure it gets completed. There should be no problems with the transfer, but if you have not received a confirmation that the funds have been moved, contact your SEP administrator to find out when to expect the process to be finalized.
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