Can I roll a SEP IRA into a Roth?

Question

I want to roll a SEP IRA into a Roth to make it easier to manage. I don't have a problem paying tax on the amount rolled over. But I don't want it to affect the annual amount I can contribute to the Roth which is $4,000. Is this possible?

Answer 1

For ease of rollover,
check with those who have your IRA now.

Rollovers usually are tax free transactions.

check out: - www.irs.gov - for all free forms and instructions, plus use their search sections - to get your specific questions answered.

GOD bless.
CPA-retired

Answer 2

You can roll any amount from a traditional type IRA to a Roth as long as you are under the $100K AGI limit in the year you do this. Of course, any withdrawals from the IRA are taxed.

Tax Specialist

Answer 3

I don't think that it should affect the amount you can contribute. You should get a 1099 that states you did a transfer, and the code on the 1099 should be a rollover, not for a regular contribution. When you get the 1099 make sure that it is coded correctly so you won't be penalized. You also might want to speak with a tax adviser.