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|Subject: Conversion of SEP to Roth?||Date: 11/3/2000 3:19 PM|
|Author: onmyway2||Number: 25946 of 73984|
Hi everyone. I'm new at this...rather I'm a late bloomer.
My spouse is self-employed and looking to open a SEP IRA. He is 67 so only has 3 years to contribute. When he has to start taking distribution in 3 years, can the SEP be rolled into a Roth? (I understand that we would have to pay income tax on it at that point.) Would it be possible by law for him to take the distribution, pay the tax and then put the remaining into the ROTH on a yearly basis. (We won't need the distribution to live on for several years and want it to continue to grow tax free) If we can swing the taxes, we would like to get as much as possible into the Roth as soon as possible. We could do the ROTH now but the SEP allows for a larger contribution.
I just don't find much about SEP's converting to ROTH's. SEP's seem to be a lesser used tool so it doesn't get as much press. Know what I mean.
(I understand about the limitations and AGI that have to be met in any given year.)
Thanks for any insight you can provide.
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