Because the funding vehicle for the SEP is a Traditional IRA, the same transfer and rollover rules that apply to a Traditional IRA also applies to an SEP IRA. The SEP is treated as a Traditional IRA, except that it is allowed to accept employer contributions.
An employee who participates in an SEP and is no longer working for the employer that sponsors the SEP has the following options:
- Retain the assets in the SEP IRA
- Transfer the SEP IRA balance to a Traditional IRA or another SEP IRA
- Roll over the balance to a qualified plan, 403(b) or 457(b) account in which the individual participates
To read more, see the SEP IRAs tutorial.
This question was answered by Denise Appleby