ROTH CONVERSION FROM A SEP?

I believe that starting in 2008, you can convert directly from a 401(k) to a Roth IRA. Can you convert directly from a SEP IRA to a Roth IRA?

Thanks,

Ed Lustberg



Hi Ed,

Yes. An easy way to remember this is to think of a SEP IRA as a traditional IRA with a little something extra- technically- the SEP is just a traditional IRA to which employer (SEP) contributions are made. As such, the same conversion/distribution rules that apply to traditional IRAs apply to SEP IRAs



Ed,
Yes, but this is nothing new. You could convert from a SEP or SIMPLE IRA to a Roth since 1998.



Thanks,

I was 99.99% sure of that. I just wanted to be 100% sure.



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