A SEP-IRA follows the same Required Minimum Distribution (RMD) rules as a Traditional IRA in most respects. Same age threshold. Same IRS tables. Same December 31 deadline.
But there are a few wrinkles — particularly around employer contributions and aggregation — that are worth understanding before you calculate.
Quick answer: SEP-IRA RMDs start at age 73, use the Uniform Lifetime Table, and can be aggregated with your other Traditional IRAs. You don’t have to take a separate RMD from each account — but you do need to include the SEP-IRA balance in your total calculation.
On this page
- What is a SEP-IRA?
- When RMDs start
- How the RMD is calculated
- Aggregation: what you can combine
- How SEP-IRAs compare
- Employer contributions and your RMD
- The still-working exception does not apply
- A worked example
- Common questions
What Is a SEP-IRA?
A SEP-IRA (Simplified Employee Pension IRA) is a retirement account used by self-employed individuals and small business owners.
SEP-IRAs are employer-funded only — there are no employee salary deferrals. Contributions come entirely from the employer. If you’re self-employed, you act as both employer and employee, and you contribute to your own account in the employer role.
Contribution limits are significantly higher than a Traditional IRA: up to 25% of compensation or $72,000 for 2026 (inflation-adjusted annually), whichever is less.
From an RMD standpoint, the IRS treats a SEP-IRA like a Traditional IRA. Same rules, same tables, same deadlines.
When RMDs Start
SEP-IRA RMDs begin at age 73 — the same threshold that applies to Traditional IRAs and most other tax-deferred retirement accounts.
Your first RMD must be taken by April 1 of the year after you turn 73. Every RMD after that is due by December 31 of the same year.
Delaying your first RMD means two in one year. If you wait until April 1, you’ll owe your first RMD plus the current year’s RMD in the same calendar year. Talk to your accountant about whether the delay makes sense. See first-year RMD rules →
How the RMD Is Calculated
The calculation works the same way as a Traditional IRA:
RMD = Prior year-end balance ÷ IRS life expectancy factor
The life expectancy factor comes from the IRS Uniform Lifetime Table, based on the age you’ll be at the end of the distribution year. If your sole beneficiary is a spouse more than 10 years younger, you may use the Joint Life Table instead — which produces a lower RMD.
The SimpleRMD calculator applies the correct table based on your inputs — free, no account required.
Aggregation: What You Can Combine
This is where SEP-IRAs offer real flexibility.
SEP-IRAs can be aggregated with Traditional IRAs and Rollover IRAs for RMD purposes. That means:
- You calculate the RMD for each account separately
- You add the totals together
- You take the combined total from any one account — or any combination — however you choose
You do not have to take a separate distribution from each account.
What can and can’t be aggregated with a SEP-IRA:
| Account type | Can aggregate with SEP-IRA? |
|---|---|
| Traditional IRA | ✅ Yes |
| Rollover IRA | ✅ Yes |
| SIMPLE IRA | ✅ Yes |
| Roth SEP-IRA | ✅ No lifetime RMD required for owner |
| 401(k) | ❌ No — must satisfy separately |
| 403(b) | ❌ No — must satisfy separately |
| Inherited IRA | ❌ No — always separate |
Each 401(k) or 403(b) must satisfy its own RMD. You cannot cover a workplace plan’s requirement by taking extra from your SEP-IRA. See 401(k) RMD rules →
How SEP-IRAs Compare: A Quick Reference
| SEP-IRA | Traditional IRA | 401(k) | |
|---|---|---|---|
| RMD aggregation with other IRAs | ✅ Yes | ✅ Yes | ❌ No |
| Still-working exception | ❌ No | ❌ No | ✅ If eligible |
| Contribution deadline | Tax filing deadline (+ extensions) | Tax filing deadline (no extensions) | End of plan year |
The still-working exception is the most important difference between a SEP-IRA and a 401(k) for RMD purposes. See the section below.
Employer Contributions and Your RMD
SEP-IRAs can receive large employer contributions — and those contributions affect your RMD balance in ways that differ from a Traditional IRA.
Contributions made after year-end affect next year’s RMD, not the current year’s. Your RMD is based on your December 31 balance. SEP-IRA contributions can be made up to the tax filing deadline including extensions — so a contribution made in April 2026 for tax year 2025 does not affect your 2025 RMD. It will affect your 2026 RMD.
If you’re still contributing, your balance may grow significantly year over year. This isn’t a problem — but it’s worth tracking, since a large late contribution increases the following year’s required distribution.
Self-employed owners: You’re both employer and employee. The same tax-filing-deadline rule applies to your contributions, and the RMD clock runs the same way regardless of whether contributions are still being made.
The Still-Working Exception Does Not Apply
⚠️ Important for self-employed individuals: With a 401(k), you may be able to delay RMDs while you’re still working. That exception does not exist for SEP-IRAs. Once you reach age 73, RMDs are required — regardless of whether you’re still self-employed, still making contributions, or still actively running your business.
This surprises many self-employed individuals who assume their SEP-IRA works like a solo 401(k) in this regard. It doesn’t. RMDs begin at 73, full stop.
If deferral is a priority, a solo 401(k) may be worth exploring with your financial advisor — but that’s a plan design decision, not an RMD calculation one.
A Worked Example
Carol is 74 and taking her 2026 RMD. She is self-employed and still running her consulting practice. She has two retirement accounts:
| Account | Dec. 31 Balance | IRS Factor (age 74) | RMD |
|---|---|---|---|
| SEP-IRA | $380,000 | 25.5 | $14,902 |
| Traditional IRA | $95,000 | 25.5 | $3,725 |
| Total | $475,000 | $18,627 |
Because both are IRA-type accounts, Carol takes her full $18,627 from the SEP-IRA to simplify recordkeeping.
Two things happening in parallel:
- Current year: Carol satisfies her 2026 RMD by taking $18,627 from the SEP-IRA before December 31.
- Prior year contribution: In April, Carol made a SEP contribution for the prior tax year. That contribution does not affect her 2026 RMD — it will increase her 2027 December 31 balance and raise her 2027 RMD accordingly.
Common Questions
Do I have to take an RMD from my SEP-IRA if I’m still contributing to it?
Yes. Once you reach age 73, RMDs are required regardless of whether you’re still contributing. There is no still-working exception for SEP-IRAs.
Can I make a SEP contribution and take an RMD in the same year?
Yes. There’s no rule against contributing and distributing in the same year. You can continue making employer contributions up to the filing deadline while also satisfying your RMD.
What if I have multiple SEP-IRAs at different institutions?
The same aggregation rules apply. Calculate each account’s RMD separately, add them together, and take the total from whichever account(s) you choose.
Can I roll my SEP-IRA into a Traditional IRA?
Yes — SEP-IRAs can be rolled into Traditional IRAs. If you’re rolling over in the same year as an RMD, satisfy the RMD first. RMD amounts are not eligible for rollover.
Can a SEP-IRA RMD go to charity via QCD?
Generally yes — but with an important caveat. If your SEP-IRA is still receiving employer contributions for the current plan year (an “ongoing” SEP-IRA), the IRS restricts QCDs from that account. Check with your custodian or tax advisor before directing a SEP-IRA distribution to charity.
If eligible, you can send up to $111,000 (2026 limit, indexed annually) directly from your IRA to a qualified charity. The amount counts toward your RMD and is excluded from taxable income. The funds must go directly from the custodian to the charity — you cannot take possession first. Married couples can each make a QCD up to the annual limit from their own accounts.
What to do next
- Run the calculator → — calculate your SEP-IRA RMD alongside your other accounts
- Is this calculator accurate? → — how SimpleRMD validates against IRS tables
- RMD rules by account type → — see how SEP-IRAs compare to 401(k)s, Roth IRAs, and more
- 401(k) RMD rules → — including the still-working exception that doesn’t apply here
- How to take an RMD → — step-by-step from calculation to confirmation
- Back to account types →
This page is for informational purposes only and does not constitute tax, legal, or financial advice. IRS rules are subject to change. Consult a qualified tax professional for guidance specific to your situation. Rules confirmed current as of April 2026 per IRS Publication 590-B (2025).