Can a SEP-IRA be converted to a Roth?
Is it possible to directly convert the SEP-IRA to a Roth or does it have to become a traditional IRA then go to Roth?
Is it possible to directly convert the SEP-IRA to a Roth or does it have to become a traditional IRA then go to Roth?
Permalink Submitted by Alan Spross on Sat, 2009-11-21 21:03
A SEP IRA is already a form of traditional IRA, and it can be directly converted to a Roth IRA.
Permalink Submitted by Susan Kendall on Sat, 2009-11-21 21:08
I thought so – thanks! Do you have a code section stating that. I have a CPA collegue that does not think this is possible.
Permalink Submitted by Alan Spross on Sat, 2009-11-21 21:22
See IRS Regs attached Q&A #4:
http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A…
Permalink Submitted by Susan Kendall on Sat, 2009-11-21 21:28
Alan, Thanks yo 😀 u for your pronmpt help with this question! Happy Thanksgiving! Susan 😀
Permalink Submitted by Anonymous (not verified) on Sun, 2009-11-22 03:39
Also, IRS Form 8606 Part II will state that conversions can come from SEPs (in the description). So it is very clearly disclosed.
pmk