SEP Contribution
Answers
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Hi captng1,
No, you should generally not be taxed on a SEP withdrawal if you contributed with money that you already paid tax on.
If, however, you take a deduction on your tax return for your SEP contribution, it essentially reverts to being considered a pre-tax contribution. You would then pay tax on the eventual withdrawals from the account.
Keep in mind that any contributions to a Traditional SEP, that is a non-deductible contribution (after-tax), must be reported on Form 8606.
Also, contribution to a Roth SEP IRA is an after-tax contribution, and the distribution is not taxable when withdrawn. Please see this IRS page for more information:
https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep
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