Do I have to claim the money in my SEP account as income?

[gvsummerville]

I have a SEP account that my employer set up and contributed to years ago but now we have 401k. I never rolled my SEP over to my 401k. Since I never contributed to it and never made any withdrawals do I have to claim it as income or is it tax deductible?

[AmyT · Accepted solution]

The money that was placed in the SEP account on you behalf will become taxable income only when you withdraw it.

Since this is not money that you personally contributed, there is also no tax deduction for it.

You are able to do a tax-free rollover of the funds to a different retirement account (such as an IRA), if you wish to do so.