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|Subject: Convert SEP to Roth?||Date: 6/22/1999 4:11 PM|
|Author: Hillmp||Number: 11456 of 78033|
My wife has a SEP which is in the process of being transferred from Vanguard to Ameritrade - all the better to invest Foolishly. I've read a bit about Roths and find their tax-free growth compelling.
Is their a way to convert the SEP into a Roth?
From the reading I've done it seems that it would have to convert first to a regular IRA, then from the regular IRA to the Roth. If this is the case, are there significant disadvantages to such a conversion?
Assuming she made such a conversion, could my wife then make annual contributions to the Roth instead of the SEP? My sense is the tax-free growth of the Roth would outweigh the higher contribution limit allowed by a SEP.
Many thanks for any help.
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