Already contributed to a traditional IRA for 2006. Can I open a SEP retirement acct and xfer the contrib?

Question

I've already contributed to my traditional IRA for tax year 2006. I want to open a SEP retirement account and contribute to it INSTEAD of the traditional IRA. Can I transfer that contribution to the new account as if I had done it directly for tax year 2006?

I am self employed. TD Ameritade suggested that it was an internal transfer and not a rollover. Their answer wasn't clear in terms of tax filing.

Answer 1

why? where are the benefits to it. you can do alot of things does not mean they are all good for us. suggest you get a little better advice on the direction of something as important as your retirement funds. there are many differences between a sep and an ira. why must you have only one? ira funds may be withdrawn prematurely for many reasons the same does not hold true for sep accounts. the early withdrawl penalties are not the same ira's if subject to a penalty would be 10% while a sep account early withdrawl penalty is 20% the main benefit to a sep is the increased contributions that maybe made to it... i say contribute to both if you can.
all investments that can be made to a sep account can also be made to an ira account ( traditional deductible, and roth)

Answer 2

definite you could! you have till ultimately the due date alongside with EXTENSIONS to fund a SEP-IRA. For tax twelve months 2007, this is 10/15/2007. SEPs are distinctive than different IRAs in this admire. See IRS Pub. 560, website 6, center column, "time shrink FOR MAKING CONTRIBUTIONS". link is below.

Answer 3

Are you self-employed? If not, no. If you are, you can do a rollover to the SEP.