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I am self employed and have a SEP-IRA that I max out every year, and also have a 401K with a previous employer that I never rolled over. Are there any problems or downfalls rolling this 401K into my SEP-IRA? This would simplify things by having a single account. Thanks for any input

MartinG
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<<Are there any problems or downfalls rolling this 401K into my SEP-IRA? This would simplify things by having a single account. >>

The problem is if you might work for another employer in the future who offered you a 401k. If you keep the accounts separate, and the future 401k was worth moving into, you can move your old 401k into it. If you mingle youe old 401k with your SEP-IRA, you won't be able to move into a new 401k.
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Thanks for the info. What advantages are there typically to rolling things over into a new employer's 401K?? Thanks again

MartinG
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MartinG,

You asked,

What advantages are there typically to rolling things over into a new employer's 401K??

Depends on the employers 401K. Most employer 401Ks, however, offer a limited range of investment choices, typically a few mutual funds (there are, of course, exceptions) And I've seen many employer 401ks that don't even offer very good performing mutual funds.

Most of my IRAs are with brokers who offer a wide range of investment choices i.e. stocks, lots of mutual fund families, bonds, etc. to give maximum diversification and flexibility.

Also, if you have employer stock in your 401k, it may be more advantageous to take the stock out of the 401k, pay income tax (and penalty if under 59 1/2) on the cost basis, and pay capital gains on the net unrealized appreciation (NUA) down the road.

ez
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