Retirement Planning/SEP and Simple IRAs

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Question
I have an old, dormant SEP IRA and a Simple IRA from a former employer (I have had the account for more than the 2 year minimum; probably closer to 10 years) where I no longer work.

I am trying to transfer these 2 accounts away from my former financial rep and custodian and was told I could consolidate them both into a traditional IRA.  Are there any tax implications I should be aware of when I start to make withdrawals?  (i.e., since the SEP was funded solely by the employer and the Simple was a combination of personal and employer contributions).  I am currently age 61, so the early withdrawal penalty would not apply to me.  I guess I'm just trying to ask if all the monies would be taxed the same upon withdrawal - as ordinary income?

Answer
The funds will be taxed the same at distribution for your SEP and IRA.  You may have a "basis" in one of the accounts that will allow a tax free distribution.  This would be the case if you have contributed after tax dollars to a retirement account, but that is unlikely.

Joe

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Joe DiDomenico

Expertise

I can answer any questions related to Individual Retirement Accounts (IRA). This includes what can and can't be done with an IRA because of IRS regulations. I can also answer questions about the different types of retirement accounts and how they apply to different people in different situations. I can help direct people on what steps to take next with their retirement accounts.

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I was a Financial Consultant at Merrill Lynch for 7 years and a Senior Vice President at CitiGroup for 3 years.

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I wrote a book entitle, "Blame It On the Broker", currently for sale on Amazon.

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Bachelor's in Financial Services from San Diego State University

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