Pro Rata Rules for Roth Conversions and SEP
If a client is doing a Roth IRA Conversion from a non-deductible IRA and has SEP IRA’s that are remaining as is, do the pro-rata rules apply as it would if it were Traditional IRA’s (as opposed to SEP’s)?
If a client is doing a Roth IRA Conversion from a non-deductible IRA and has SEP IRA’s that are remaining as is, do the pro-rata rules apply as it would if it were Traditional IRA’s (as opposed to SEP’s)?
Permalink Submitted by Alan Spross on Mon, 2012-04-09 17:40
Yes, the balance of all traditional. SEP and SIMPLE IRAs must be included in calculating the pro rate rules. It also does not matter which account funds the conversion since the pro rated amount would be the same.