In April 2006, I opened a SEP-IRA. Can I covert it to a ROTH IRA?
2006-11-11 04:29:47 · 3 answers · asked by fomocojo_2000 2 in Business & Finance ➔ Taxes ➔ United States
If you have paid any money into it, the conversion will be a taxable event. You will, in other words, have to pay tax on the money that has hitherto been sheltered. It is not long since you opened it so that may not be prohibitively expensive.
You will have to decide if the tax relief foregone is worth the guarantee of not having to pay tax on the earnings when you retire. Bear in mind that most people will have reduced tax liabilities when they do retire.
2006-11-11 06:55:55 · answer #1 · answered by skip 6 · 0⤊ 0⤋
You can as long as you qualify for the roth. If you never deducted the SEP contribution then the contribution and the income on it will not be taxable to you.
2006-11-12 08:27:44 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
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2006-11-11 12:32:40 · answer #3 · answered by Anonymous · 0⤊ 1⤋