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kGreetings, ggaudzels, and welcome. You asked:

I'm above 63 K in income and can only make nondeductible IRA contributions. If I set up a nondeductible IRA account, when I distribute would I have to count my deductible SEP IRA distributions to figure out how much is taxable and how much is return of principal? Or can I just count my nondeductible IRA separate to figure out how much is taxable and how much is return of principle?

If you make those nondeductible contributions to a traditional IRA, then yes, you would use your SEP IRAs to determine the taxable part of any distribution because the SEP-IRA is a traditional IRA.

However, if all I could make is a nondeductible contribution,then I wouldn't use a traditional IRA at all. I would use a Roth while I was in the AGI range to do so. Roth earnings would never be taxed (and neither would the contributions) provided I am over 59 1/2 and the account has been open for five tax-years when I take those earnings. In a traditional IRA, the earnings always get taxed, and a part of any withdrawal will always be taxed as well. You don't have that problem with a Roth.

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