The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Roth SEP? Date:  9/26/1998  6:35 AM
Author:  KCofMaine Number:  5648 of 88495

I have been trying to figure out how to get more into my Roth IRA. My wife and I are fully funding our own Roth IRAs.

I am self employed. I can do a SEP (Simplified Employee Pension Plan). I have no employees, therefore, don't need to also contribute equal amounts for others. I can give up to just a little less than 15% of my Schedule C income into such a vehicle. This vehicle seems to be pretty interchangeable with IRAs, in as much as one can convert his SEP to an problem. I am assuming one can change from IRA to SEP too. Can he??

But the real question is this...can the SEP be set up as a Roth style, or must it always be a traditional IRA style vehicle. That is, can the SEP have Roth characteristics--no deductibility of contributions to the plan, but completely tax free growth??

Thanks for your help.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us