When are income taxes paid on money in a SEP account?
Income taxes are paid when money is withdrawn from a SEP account. When can money be withdrawn from a SEP account? SEP money can be withdrawn without penalty at age 59. Earlier withdrawals are generally subject to a 10% additional income tax unless the participant becomes disabled or receives distributions in the form of an annuity that are part of substantially equal payments over life or life expectancy. More Information About SEPs Call the nearest office of the Internal Revenue Service and ask for the latest Publication 590. For copies of this brochure, call EBSA’s Toll-Free Employee & Employer Hotline at: 1.866.444.EBSA (3272). THE TEXT ABOVE IS PUBLIC DOMAIN MATERIAL AUTHORED BY AN AGENCY OF THE UNITED STATES GOVERNMENT AND NOT COPYRIGHTED BY THIS WEBSITE.
