Aggregation for IRAs for determining basis

Submitted by Edward Lustberg on Fri, 2015-10-23 17:20

I know when you convert IRAs to Roth, you need to aggregate all of the IRA accounts and determine the percentage of total basis. Regardless of which account money is converted from, the percentage taxable remains constant.

My question is, when doing this aggregation process, are SEP IRAs included?

Thanks,

ED Lustberg



Submitted by Alan - IRA critic on Fri, 2015-10-23 17:59

Ed, SEP and SIMPLE IRAs are included in the calculation done on Form 8606. All owned non Roth IRA accounts are included in the year end balance on the 8606. Any inherited IRAs with basis are separate from owned IRAs and would include a separate 8606 to report distributions.



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