How to use my self-directed SEP

[Sarah Vaught]

How can I use my self-directed SEP and personal IRA to invest? My accountant told me I could use it but would need to replace within 60 days to avoid taxes and penalties. Any advice would be helpful. Thanks! 😊

[Linda Weygant]

Quote from @Sarah Vaught:

How can I use my self-directed SEP and personal IRA to invest? My accountant told me I could use it but would need to replace within 60 days to avoid taxes and penalties. Any advice would be helpful. Thanks! 😊

 As @Dmitriy Fomichenko indicated, a lot more detail is needed before this can be answered.  However, two things pop out at me.  You indicated that this is a Self Directed plan and then you indicate your accountant said you would need to replace the funds in 60 days.

These two things don't really go together and I fear your accountant is not well versed in self directed retirement plan investing.  Generally speaking, your accountant would be correct IF you were looking to withdraw funds from the plan and purchase in your personal name.  

But within certain boundaries (which is what Dmitriy is trying to determine) you can invest WITHIN your retirement plan, in which case your accountant's advice is not correct.  The fact that your accountant didn't dive further into this before offering those guidelines is somewhat concerning and you may want to get with a CPA/accountant that has a more in-depth understanding of self directed retirement plans and how they work.

There are several such CPAs here on Bigger Pockets, so perhaps a consultation with one of them would be in order.  In the meantime, I look forward to your answers to Dmitriy's questions to see if that changes my observations/discussion points.