Whether you just want all your retirement assets in one place or you're not happy with your Simplified Employee Pension individual retirement account, you can move it to your traditional IRA whenever you want. Your employer can't stop you from moving the money. The easiest way to move the money from a SEP IRA to a traditional IRA is with a transfer because you simply submit a transfer request form and the trustee does the rest. It won't even show up on your taxes. However, if you want to do a rollover and have the money paid to you, you have to jump through a few more hoops. For example, if you have a big bill due but your bonus isn't coming for four more weeks, you could use the rollover to pay the bill and then use your bonus to complete the rollover.
Request a distribution from your SEP IRA by completing a distribution request form and submitting it to the bank that holds your SEP IRA.Step 2
Redeposit the money in your traditional IRA within 60 days of receiving the distribution. Don't miss this deadline or the money is considered permanently distributed and you'll owe taxes and potentially early withdrawal penalties as well.Step 3
Report the rollover on your taxes, even though you won't owe any taxes if you completed it correctly. The amount of the distribution goes on line 15a of Form 1040 or line 11a of Form 1040A. Then, assuming you did it correctly, write "0" on line 15b of Form 1040 or line 11b of Form 1040A. Lastly, write "Rollover" next to line 15b of 11b so the IRS knows what you did. (ref 1, p. 23; ref 3, p. 22)