[[I have searched, but haven't hit on this exactly. My wife and I are self-employed; all my IRA contributions are non-deductible.]]I guess that my question would be: WHY? Just because you are self employed? Nope. Perhaps your question will lead into this point. [[ Please confirm that I have this right: I understand I can convert my SEP to a Roth, take the hit, then enjoy years of tax-exempt Foolish gains! Since these gains are quite Foolish, having them tax-exempt quickly out-paces any Traditional-vs-Roth comparisons of the original contribution.]]Not necessarily true. If you run the numbers, you may find that your SEP plan isn't that bad. You get current tax advantages. Right now. With tax deferral. So it's not as clear cut as you make it out to be.[[ Doesn't this give me a way of getting more money into a Roth than the $2K ($4K married) limit? More in means more gains means more tax-exempt gains, yes?]]Basically yes. But you would have to open and close your SEP accounts on a yearly basis. That could cost you some money also. But it would certainly build up your Roth quickly...at least more quickly than the $2k per year that is otherwise allowed. But it would also cost you your annual tax savings.[[ As for details, I read mixed messages on whether the SEP can convert right to a Roth, or whether it has to convert to a 'regular' IRA first. ]]Check with your broker. It appears that you can take a SEP directly to a Roth. But many brokers have different rules.For a more complete discussion on Roth IRAs, check out my post on them in the Taxes FAQ area.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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