SEP--how long does it have to remain in the SEP

Can my client contribute to a SEP for 2017 and take it out the next day or is there a time limit on how long it has to remain in the SEP? It is a cash flow issue, with high self employment income for 2017.

So you contribute to SEP IRA based on 2017 income based on 20i7 income, then take it out as a 2018 distribution. Have to be at least 59.5 I assume. Looks ok to me unless I am missing something.

I have some time to think about this as am on extension. Potential to lower my 2017 AGI. I have to take a MRD on my Sep IRA in 2018 based on 12-31-17 balance Can I still add to my Sep IRA based on 2017 income - have extension for 2017 to 10-15-18. Is the fact that I made direct contributions from my regular IRA in 2017 to a charity an issue?

From IRS FAQ's

Distributions while still working
Can I take money from my traditional IRA, or my SEP or SIMPLE IRA, while I am still working?

You can take distributions from your IRA (including your SEP-IRA or SIMPLE-IRA) at any time. There is no need to show a hardship to take a distribution. However, your distribution will be includible in your taxable income and it may be subject to a 10% additional tax if you're under age 59 1/2. The additional tax is 25% if you take a distribution from your SIMPLE-IRA in the first 2 years you participate in the SIMPLE IRA plan.

https://www.irs.gov/retirement-plans/re ... ithdrawals

And yes Jake, you can fund a SEP with your extension, even if you have already funded your IRA. The only catch, you might not be able to deduct your IRA contribution since you now are covered by an employer.

I can't deduct a traditional IRA anyway as our total income from interest, dividends, pension, MRD's from traditional and SEP IRAs, Sch C, LTCG is too high. Three years ago when I had a high Sch C income i contributed to ROTH IRAs and my SEP-IRA. In the past 3 years I have had a low Sch C net due to an offset mostly by the SEHI adjustment to income. In 2017, and 2018 and perhaps beyond I will have some consulting net income several thousand beyond that SEHI adjustment to income. I think I can divert some of that to a ROTH IRA and/or a my existing SEP IRA but not sure. My objective for 2017 and 2018 was to get AGI below the $170,000 threshold where Part B nd D surcharges kick in. Higher retirement balances due to a strong stock market, a lower MRD divisor and better interest on cash probably makes doing that in 2019 impossible. Nice problem to have as I know. I guess I will have to just plug the numbers into Proseries and see what it tells me.

Jake-you can't contribute to an IRA if you are taking required minimum distributions. SEP yes, IRA no.

Jake-you can't contribute to an IRA if you are taking required minimum distributions. SEP yes, IRA no.

Also ok to contribute to a ROTH IRA?

Yes, you can contribute to a Roth IRA after age 70.5.

It has been awhile, but my memory is that the total SEP IRA and the ROTH IRA contributions was limited to the Sch C income.
So if the Sch C income was $50,000 net of the 50% FICA and SEHI adjustment to income, the SEP IRA was limited to $10,000, and then you could also do a max Roth of $5,500 or $6,500 depending on age. But the SEP and Roth could not exceed the net of Sch C after those adjustments. Yes, it's complicated. The tax software usually does a good job.