Non-deductible IRA conversion
Does a SEP-IRA and/or a Simple IRA count as a “traditional” IRA for purposes of calculating pro-rata basis for a Roth conversion of a traditional IRA with non-deductible contributions? Does it matter if either plan (SEP or Simple) is “dormant” or active with regard to “current” employer or employee contributions?
Thanks,
Wes Carr
Permalink Submitted by Anonymous (not verified) on Tue, 2010-03-02 17:37
Yes, take a look at IRS Form 8606 in Part I where the calculation is performed (lines 6,7,8):
http://www.irs.gov/pub/irs-pdf/f8606.pdf
It does not matter what status the plan is – active or dormant.
pko