I have gotten some good replies on this board and read some IRS stuff on Roths, and I thought I had it all figured out, but maybe not. My situation is this: I have a 401(k) at work; my wife has a SEP account. I thought that these things were totally independent of Roth IRAs and that we could both start Roths. Just today, on another board, I read where someone had a SEP that he changed into a Roth. This makes me think that maybe SEPs and Roths are connected, so that it is not possible to contrbute to both. (I remain very sure that my contributing to the 401(k) does not have any impact at all on my ability to contribute to a Roth.) So, my first question is just whether it is possible to contribute to both a SEP and a Roth. (I actually believe that it is posssible, and I'm looking for some confirmation of this.)

My second question is this. My plan for the Roth is to buy stock in potential rule-breakers--stocks that years from now might be worth several times their purchase price. Since no tax is paid on money that is received from a Roth, this plan seems to me to be a good one. IF some stock turns out to be a great winner, all of the proceeds could be received tax-free (instead of having chunks of the proceeeds go to capital gains tax, as would be the case with a winner held outside of a Roth). --Does this approach make sense?