Can other assets be contributed to a Traditional IRA?

Contributions made by an employer through a retirement plan known as a simplified employee pension (SEP) plan are contributed to Traditional IRAs. Once SEP plan assets are in the Traditional IRA, all the general Traditional IRA rules and regulations apply. They do not, however, affect an IRA owner’s ability to make regular Traditional IRA contributions. But participating in the SEP plan makes an individual an active participant for purposes of Traditional IRA deductions.

Traditional IRAs also may receive rollovers of pretax and after-tax assets from employer-sponsored retirement plans, which include 401(a) and 403(a) qualified retirement plans (QRPs), 403(b) plans, governmental 457(b) plans, the federal Thrift Savings Plan, and SIMPLE IRA plans (after two years of participation in the SIMPLE IRA).

Recharacterized assets also may be contributed to a Traditional IRA.