Roth Conversions & SEP-IRAs

Submitted by S Ross on Thu, 2008-01-31 15:56

Regarding Roth Conversion eligibility, do SEP-IRA contributions haver to be added back to determine MAGI?

Also, are SEP-IRA & IRA balances have to be considered jointly or are they separate for determining an after-tax ratio?



Submitted by Alan Spross on Thu, 2008-01-31 17:28

No, SEP IRA contributions shown on line 28 of Form 1040 are NOT added back. But if a regular TIRA contribution is made to a SEP IRA account and shown on line 32, that figure would be added back.

All TIRA, SEP and SIMPLE IRA balances are added together to determine the tax free ratio for distributions and conversions due to non deductible contributions or rollover of employer plan after tax contributions to a TIRA.

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