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[[Two questions (actually three) from yet another novice investor:]]

Okey Dokey...let's see if I can give you some answers.

[[ 1) If my employer is contributing about $3,000 annually to a SEP fund of my choosing, can all of
this money be placed in a single Roth IRA, or is there a $2,000 max per account?]]

You can take the funds from you SEP account and convert them to a Roth IRA. No problem there. And that contribution could be in any amount. Simply don't confuse a "conversion" with a "contribution". They are two different animals. But the problem is that you may have to "close" your SEP account in order to make that conversion to the Roth IRA. And (assuming you qualify to make the conversion...based upon your AGI), you'll get hit with taxes on the conversion. So check with your broker to see what your options might be with respect to this account. The $2k max is for contributions...not conversions.

You can read more about this in my series on the Roth IRA in the Taxes FAQ area (archives). You might want to check it out.

[[ And if so, what
is the difference between the extra $1,000 and the base $2,000, since with a Roth , they are both
taxed as income?]]

Well, conversions will be taxed to you as additional income, where the contribution has never been claimed as a deduction, and is therefore not required to be taken back into income. Again, check out my Roth IRA posts in the Taxes FAQ area for more specific information.

[[ 2) If my employer makes the above contribution, can I still invest $2,000 of 'my own' money in the
above Roth account or some other, or have I already maxed out?]]

Assuming that your AGI allows you to make a contribution, you can certainly do so even if your employer contributes to your SEP account. In this case, you contribution would be limited to $2k per year.

[[ Thanks very much.]]

Hope this helps. Again, read my series on the Roth IRA for additional information and examples. You'll be glad that you did.

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