Individual has a IRA with only nondeductible contributions. She also has a SEP with only deductible contributions. She is no longer funding the SEP. She has an individual 401k which she has now been funding. Can she roll her SEP into the 401K and then do a conversion of the IRA to a ROTH? Her IRA has not made much money and there is very little earnings there. If she does not close the SEP, my understanding is that the SEP and IRA would be combined for basis allocation purposes with the result that the conversion would be partially taxable. Are there timing issues to be aware of?
Thank you and I am a subscriber.