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I may need to borrow from my SEP account for a short term working

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capital need. Is this...
I may need to borrow from my SEP account for a short term working capital need. Is this possible and how would it work?
Thanks
Submitted: 6 years ago.Category: Tax
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Answered in 16 hours by:
10/3/2011
Tax Professional: Bill, Enrolled Agent replied 6 years ago
Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3,153
Experience: EA, CEBS - 35 years experience providing financial advice
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Unfortunately, borrowing from a SEP is not permitted. However, if you only need the funds for a short period (60 days or less), then you could take a withdrawal and as long as you deposit the funds into the same account or a new SEP within 60 days then the distribution will not be taxable. The deposit would be designated as a rollover and you would also report the rollover on your tax return. Once you do this you cannot do it again from that account for 12 months.
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Customer reply replied 6 years ago
I can put it back in the same account within 60 days or do I need to open a new account for the "rollover"?
Tax Professional: Bill, Enrolled Agent replied 6 years ago
You can deposit it to the same account as a rollover.
Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3,153
Experience: EA, CEBS - 35 years experience providing financial advice
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