Can SEP Contributions be Deposited into a Traditional IRA?
Can my employer deposit the SEP contribution from my work plan into my existing traditional IRA or must I set up a separate SEP-IRA?
Your employer may be able to deposit SEP contributions into your traditional IRA depending on the:
- requirements that apply to your traditional IRA, and
- terms of your employer’s SEP plan document.
Terms of the traditional IRA
The financial institution where you have your IRA may restrict the type of contributions that can be made to your IRA. Ask your financial institution if it will accept your employer’s SEP contributions for deposit into your existing traditional IRA.
SEP plan document
Your SEP plan document may require your employer to deposit SEP contributions into a SEP-IRA at a specific financial institution. Review your SEP plan document to see where your SEP contributions can be deposited.
- SEP plan Web pages
- Publication 590, Individual Retirement Arrangements (IRAs)
- Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)