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<<My cousin has a SEP_IRA and wants to roll it to a ROTH IRA. Can she do that? Doesn't she have to roll that over to a Traditional IRA first and then into the ROTH?>>

She may roll the SEP-IRA directly to the Roth IRA. The SEP is not a qualified retirement plan and it is a form of the traditional IRA. As KAT in Chicagoland pointed out a few weeks ago, the new version of Form 5498, IRA Contribution Information, explicitly refers to rollovers from SEP to Roth IRA. That in and of itself says the IRS will accept the validity of such a rollover.

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