SEP ROTH to ROTH IRA
we are contemplating opening a ROTH SEP for an independent contractor. What are the rules if he wants t0 roll it into a ROTH IRA?
we are contemplating opening a ROTH SEP for an independent contractor. What are the rules if he wants t0 roll it into a ROTH IRA?
Permalink Submitted by Alan - IRA critic on Mon, 2025-02-03 18:44
The Roth SEP balance could be rolled into a Roth IRA any time without tax or penalty.
This is the same as a rollover from a pre tax SEP IRA, except that the pre tax rollover to a Roth IRA would be taxable. Another difference is that a Roth SEP to Roth IRA rollover would be subject to the one rollover limit in 12 months because they are both IRAs and this would not be a conversion.
Permalink Submitted by Geoffrey Kasher on Mon, 2025-02-03 18:54
thanks for confirming