- 1). Review your most recent SEP-IRA statement to determine how much you have in your account. Decide whether you want to liquidate the entire account or just a portion of it.
- 2). Discuss your plans to liquidate your SEP-IRA with your CPA or tax accountant. If you are not yet 59-1/2 you could face a tax penalty for taking money out of your IRA. An accountant can give you advice on how to avoid those penalties and still get the money you need.
- 3). Contact the administrator of the SEP-IRA and tell them you want to close your account. If you merely wish to transfer the IRA from one administrator to another, you can request a transfer form, complete it and present it to the new administrator. If you are cashing out the account, you need to let the administrator know how you want to receive the proceeds, i.e., by direct bank transfer or check.
- 4). Complete any paperwork required by the administrator. Keep copies of all forms for your records. You will need these when you complete your income taxes.
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