Articles on Stock markets

News, Research and Analysis

Help Center
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal Finance
Corporate Basics

What are the Withdrawal Rules for My SEP IRA?

SEP IRAs are subject to the same withdrawal rules as Traditional IRAs. SEP IRA contributions and earnings may be withdrawn at any time, but there are penalties that may apply, using the same rules as those applied to Traditional IRA withdrawals.

If you are under the age of 59½, you must pay a 10% penalty fee in addition to income taxes on your withdrawal. Of course, there are certain exceptions to the penalties: first time home-buyers expenses up to $10,000, medical bills, educational expenses, and a few others.

If you are over age 59½, you will only have to pay income taxes on the amount you withdraw. Once you reach age 70 ½, you are required to begin taking Required Minimum Distributions, according to IRS guidelines.

Keywords: household income, retirement accounts, IRS, traditional IRAs, age 70 ½, 10% penalty, early withdrawal penalty,
AA+/Aa1 — credit ratingHow Can I Buy Bitcoin?Is Bitcoin Legal?Academy: Read our Articles and Sign Up for LessonsWhat is market arbitrage?