SEP-IRA plans do not permit a catch-up contribution as they are not salary deduction plans.so your example is incorrect.
If age 50 or older and you are depositing your annual IRA contribution into your SEP-IRA account (to minimize the number of accounts you have or to get better economies of scale) you can put your IRA catch-up into the SEP-IRA account, but that is just $1,000, not the $6,000 you stated,

Hi Siena – You can do the rollover with no tax consequences (but there will be taxes if you convert the SEP to a Roth). But you may want to keep the SEP since you can get a much larger deduction/contribution.

I have SEP IRA, Traditional IRA and Roth. I opened up SEP IRA this year as I became self-employed (I have no employees), and cash is sitting on the SEP account.
I am wondering if I should just roll it over to Traditional IRA/Roth. Are there a rule that the funds have to stay in the SEP account for certain period to avoid tax charges?

Hi Wendelin – According to this page from the IRS, the answer is no. But check with a CPA to find out what your options are.

Hi Heather – If your CPA hasn’t been much help you may need a new CPA. You’ve got to fix this, and it will take help from an accountant.

Hi Chip – Probably not. Retirement contributions are generally based on earned income. But check with your accountant, it may be possible. Also, I would think it would be if stock trading is your business.

I started a Sep about 3 years ago when I started taking a paycheck. I didn’t do anything with it but let the money sit. I decided to move my money into some funds and found out I needed to start one for my employee at the time I started mine even tho the 3-5 rule wouldnt matter because I started mine sooner as the employer. I’m like 3 years late in funding her’s. I didn’t fund my employee because I had no clue what I was doing or that I needed to. Best way to fix this? My CPA has not been much help so far.

Thank you.