Business & Finance mortgage

How to Use a SEP to Pay a Mortgage Payment on a Farm

By Business & Finance Last updated Monday, May/27/2024

1). Determine how much money you need. SEP participants can make withdrawals from the account whenever they wish, but tax penalties and early withdrawal fees typically apply. So decide exactly how much money you need to withdraw to cover the farm mortgage payment, and make sure that after the fees and penalties are deducted, you still have enough to cover the mortgage.
2). Obtain withdrawal paperwork. Contact the financial institution that holds your SEP account and request a withdrawal form. Some institutions require you to complete a hard copy form, while others allow you to complete and submit the form online.
3). Pick up the check from the local branch office of your SEP account institution. If the institution doesn't have a branch in your area, you'll have to wait for a check to be sent to you.
4). Deposit the funds into your bank account or get a money order or cashier's check to make the mortgage payment on your farm.

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