<<I have SEP-IRA account. Currently the money is invested in a couple of mutual funds, but I would
like to trade them for individual stocks, and start using a strategy like Fool4 or BTD5.>>

Groovie...

<< (1) Can I do that?>>

Sure...no problems. You may have to move your account with a broker (if it is not there already) in order to purchase the individual stocks in which you want to invest. But that should be your only issue. Uncle Sammy won't bother you.

<< and (2) Can I trade stocks within the account each year, buying & selling
according to the strategy, and still defer taxes? I would think as long as I keep the money in the
account that it would be okay to do that.>>

Yup...as long as the funds stay in your SEP account, your gains are deferred until you actually remove the funds.

TMF Taxes
Roy