I owe a large amount of money to my SEP. Is it best to put the money in chunks at a time or wait until I have it all to invest?
Answers | 2
A SEP is a form of IRA generally used by self-employed individuals and small businesses for retirement savings. While you may take a withdrawal (called a "distribution") from an IRA or SEP-IRA, you cannot take a loan from it. So as such, you don't actually owe anything to your SEP.
SEP-IRAs are funded only by employer contributions. Some employers will make contributions throughout the year. Others will wait until their tax filing deadline (including any extensions) for the year. Employer contributions to a SEP are tax-deductible.
If you're the employer (or are self-employed), you'll want to decide when to make SEP contributions based on your business' cash flow, any promises to your employees, and when (what tax year) you want the tax deduction.
More information can be found at this IRS page:
Hope that helps.