Hello,
I’ve been retired for over 2 years. I think it Would it make sense to close my SEP account and add it to my existing Rollover. They are both in Fidelity. Any pros and cons.
Thank you
Sal
I don’t see any reason not to combine them from a tax standpoint. The IRS considers all Traditional IRAs you own, including SEP IRAs and rollover IRAs as a single “Individual Retirement Arrangement”, and uses the total balance of all those accounts when calculating things like RMDs or the pro-rata rule for conversions.
If you have investments in the SEP IRA that can’t be moved to the rollover IRA for some reason and you want to keep those investments, you may not want to combine the accounts.
AJ
2 Likes
Hello AJ
Understood, Thank you for that information
Sal