SEP IRA transfer to Traditional IRA

[katy-blake2010]

I contributed to a SEP IRA in 2024. Is it possible to move 1/2 of those funds to my traditional IRA and 1/2 of those funds to my wife's traditional IRA? I am no longer self employed and do not intend on being self employed.

[MinhT1]

Yes.

You can rollover your SEP IRA to your or your spouse's Traditional IRA as SEP-IRAs are treated as Traditional IRAs for rollover purposes.

These rollovers are not taxable.

[dmertz]

You are not permitted to roll over or nonreportably transfer any of your IRA funds, including SEP IRA funds, to your spouse's IRA.  Moving funds from your IRA to your spouse's IRA would be a reportable distribution from your IRA and an ordinary contribution to your spouse's IRA, not a transfer or rollover.

The only way that you could do a nonreportable transfer of 1/2 of your SEP IRA to your spouse would be as a transfer incident to divorce (which means that you would have to get a divorce).