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KCofMaine wrote:
<<This vehicle seems to be pretty interchangeable with IRAs, in as much as one can convert his SEP to an problem. I am assuming one can change from IRA to SEP too.>>

I'm not sure this is a sensible question. So far as I can tell, a SEP-IRA is just an IRA. The SEP qualifier seems descriptive of how the funds enter the IRA. Quoting from the 5305-SEP contribution agreement:

Under a SEP, the employer is permitted to contribute a certain an employee's Individual Retirement Account...

The form indicates that the IRA itself is just an IRA.

<<But the real question is this...can the SEP be set up as a Roth style, or must it always be a traditional IRA style vehicle.>>

No - but, once you've captured the SEP contributions in your personal IRA, they're just personal IRA funds. You can convert them under the rules for personal IRAs. Depending on how liberal your administrator's rules are and your patience, you can convert after every contribution, or just do it four times a year or something.

Honestly, though, I can't imagine any situation in which having the money in a Roth would be worth enough to me that I'd be willing to do monthly conversions. I'd be concerned about problems with the IRA administrator, and with how the IRA would look on this activity if I were ever auditted.

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