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R5473c writes:

<<I have an employer-funded SEP IRA (bank managed in mutual funds).

I am going to open my own account so that I can purchase stocks on line.

Can a tax deferred SEP account be a Roth type of IRA instead?>>

No, it cannot; however, after the employer's money reaches the SEP-IRA it may be converted to a Roth.

Given the following parameters, which would be better for me -- traditional tax deferred IRA or a Roth?

<<Current SEP account value: $10,000
Annual Contributions: $3,000
Duration: 15 years
Tax Bracket: 15% now, and probably the same at retirement. >>

Given those parameters and the same investment in each, neither would be better than the other from your income tax viewpoint; however, the proceeds of a Roth go to heirs tax-free while those in a SEP-IRA would be subject to income tax at the non-spousal heir's tax bracket.

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