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photobyrob, you asked:

<< I currently have a variable annuity with Northwestern Mutal Life Ins. The annuity was funded with 401(k) funds I needed to put somewhere after I left two previous jobs. I have not added any additional money to the account, which is currently invested 100% in the Index 500 (S&P 500 tracking fund)option of the NML program. The balance is currently around $10,000. I am self-employed, 35 yrs old, and I would like to start contributing to the account. But this means contributing after-tax dollars with no immediate tax benefits. My question is--Can I take that money from the annuity account and open a new SEP account somewhere else? >>

1st - WHY . . . would you even want to do this?

2nd - There's NO benefit for you do do this.

3rd - Apparetnly this Variable Annuity is in an IRA as typically 401(k) funds are rolled into an IRA.

4th - If for some reason the annuity is NOT IN an IRA, then one can only move money out of the annuity per the rules of annuities and if you want o fund your SEP (a Simple SEP I take it), you can do so up to the limits of the SEP in any given year. (Note: With the new limits about to be approved by our governement, those limits will be ever increasing soon)
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