Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have searched, but haven't hit on this exactly. My wife and I are self-employed; all my IRA contributions are non-deductible.

Please confirm that I have this right:

I understand I can convert my SEP to a Roth, take the hit, then enjoy years of tax-exempt Foolish gains! Since these gains are quite Foolish, having them tax-exempt quickly out-paces any Traditional-vs-Roth comparisons of the original contribution.

Doesn't this give me a way of getting more money into a Roth than the $2K ($4K married) limit? More in means more gains means more tax-exempt gains, yes?

As for details, I read mixed messages on whether the SEP can convert right to a Roth, or whether it has to convert to a 'regular' IRA first.

Thank you,
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.