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I've got a question as to what I'm allowed to do at this point.

My wife has a SEP from a previous year. Early this year, we figured her business "income" to be a loss for '98, so didn't expect to qualify for a SEP contribution at all.

We converted all of our non-Roth IRAs to Roth IRAs earlier this year. When figuring the business income for tax filing, there turned out to be a small profit.

So, we sent in a small check to get our little deduction, and a few more dollars into a tax-deferred plan (our other contributions are maxed out).

Now, are we able to convert this newly-invested money into our Roth conversion account, even though we already converted (other funds) from that account this year? Do we have to recharacterize our Roth conversion and then include the extra money when we re-convert?

We'd rather not have such a small amount sitting in an extra account. Part (a small part) of the idea behind converting all the funds to Roths was so we could merge things into a simpler statement. I worry that Vanguard's computers won't allow us to convert this new money because we already converted that "account" this year.

- LoopinFool
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