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Can a SEP IRA transfer to a Traditional IRA be an excess or otherwise disallowed contribution?

If I, being self-employed, contributed max-allowed $X (in 2019 for year 2018) to a SEP IRA account and a max-allowed $5,500 to a Roth IRA, can I (immediately/in 2019) initiate a Trustee-to-Trustee transfer of the $X from the SEP IRA to a separate Traditional IRA, without a penalty/rollover/recharacterization/$X being counted as an individual IRA contribution for either 2018 or 2019?

Basically, each year, I would like to immediately move/merge contributions made to a SEP IRA to an existing Traditional IRA, but the institution with which I hold the SEP, Roth, and Traditional IRAs cautioned such transfer might count the SEP contribution as a Traditional contribution, and since I already contributed to either the Roth or Traditional IRA, the transfer would be an excess contribution. (But the agent said she was not a tax expert.)

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1 Reply

Can a SEP IRA transfer to a Traditional IRA be an excess or otherwise disallowed contribution?

a trustee-to-trustee transfer is not a contribution.

a transfer from one account to another of the same type with the same custodian would not generate any tax paperwork.

I think your action would be treated as a Rollover.

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