An employer cannot prohibit distributions from a SEP-IRA. Also, an employer cannot condition contributions to a SEP-IRA on the keeping of any part of them in the account.

Distributions (withdrawals) from a SEP-IRA are subject to traditional IRA rules. For information on these rules, including tax treatment of distributions, tax-free rollovers, required distributions, and income tax withholding, see Can I Move Retirement Plan Assets? and When Can I Withdraw or Use IRA Assets? in chapter 1.

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