Help - Search - Members - Calendar
Full Version: SAR SEP Distribution
BenefitsLink Message Boards > Retirement Plans > SEP, SARSEP and SIMPLE Plans
UnionTR
Under a SAR SEP Plan, Can a participant that is still contributing to their SAR SEP and an Employer that makes a matching contribution once a year to their SAR SEP transfer their money out of the SAR SEP to a Traditional IRA and if so, can they only take out what they have contributed or all of the monies? IS there a minimum amount that has to be left in the account?
rcline46
That is the wonderful thing about any SEP plan, it is an IRA, and can be transferred to another IRA at will, and withdrawn at will (subject to penalty taxes).

Special penalties apply for SIMPLE IRA plans.
Appleby
'Matching' contributions cannot be made to a SARSEP, so I will assume that you mean 'employer discretionary' contributions.

It is true that assets in any SEP, including SARSEP plan can be transferred out ( or even distributed) at any time. This is because all contributions to SEPs are non-forfeitable.
However, there is one exception. For salary deferral SEPs, amounts representing deferrals, to the extend they are not amounts in excess of the 402(g) limits, should not be withdrawn until the employer has completed the section 125 tests.
Gary Lesser
Elective SEP contributiuons (within IRC 402(g) limits) may not be withdrawn before the _earlier_ of the determination date or March 15 following the end of the plan year, otherwise they will be subject to a 10% penalty, regardless of whether any other exception applies. [IRC Sec. 408(d)(7)(A)]
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.
Invision Power Board © 2001-2012 Invision Power Services, Inc.