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I am currently vested 100% in a SEP (Simplified Employee Pension.) with my employer. Our accountant calls it a profit sharing plan. I have never contributed, as it is not an option. My employer contributes whatever he can every year.
I want to know what happens to this money if I quit and/or if I get laid off? I know with 401ks you can roll it over, is this true with a SEP? I would ask our accountant, but I don't want him to tip off my employer. The only ones in the company are me and him, and I'm certainly not going anywhere. I just wanted this info.
Sorry if this is the wrong forum, but I couldn't find one for Finance or Investing. Any information is greatly appreciated!
If you are 100% vested the monies in the account is yours. You can roll it over into another designated retirement (profit sharing/pension) account if you resign or retire. Just do not take possession of the money for more than thirty days before putting it into another designated account with a financial institution. If you are not at least age 59 1/2 any withdrawal of money will be penalized by 10%. And since all the contributions have come from your employer you will pay income taxes on whatever amount you pull from the account once you start withdrawing from the account. By law your employer is supposed have your SEP account 100% funded. It should be safe...
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