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URL:  https://boards.fool.com/in-1998-i-cashed-out-my-sep-from-a-prior-employer-10528622.aspx

Subject:  Re: 10% penalty on erly w/d for 1st time home? Date:  1/17/1999  6:12 PM
Author:  TaxService Number:  8492 of 129771

In 1998, I cashed out my SEP from a prior employer to purchase my first home (condo). Does the waiving of the 10% penalty apply to SEP Plans? Is SEP and IRA synonymous? Or is a SEP an employer-sponsored retirement plan, thus not eligible for the waiving of the penalty? The amount I cashed out was 1,500.00 (closed SEP account).

****The same rules that apply to the distributions from regular IRAs apply to SEPs. Report the transaction on Form 5329 and mark off the exclusion that applies. In your case that would be exception 09.


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