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Publication 560

Distributions (Withdrawals)(p8)

As an employer, you cannot prohibit distributions from a SEP-IRA. Also, you cannot make your contributions on the condition that any part of them must be kept in the account after you have made your contributions to the employee's accounts.
Distributions are subject to IRA rules. Generally, you or your employee must begin to receive distributions from a SEP-IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 701/2. However, under the Worker, Retiree, and Employer Recovery Act of 2008, required minimum distributions (RMDs) for 2009 are waived for IRAs, including SEP-IRAs. As a result, if you reach age 701/2 in 2009 your first RMD, normally due by April 1, 2010 is waived. You are still required to take your RMD for 2010 on or before December 31, 2010. For more information about IRA rules, including the tax treatment of distributions, rollovers, required distributions, and income tax withholding, see Publication 590.