Q. I have $422,000 in my SEP-IRA from my self-employed business. Can I convert this to a Roth IRA? E.C., Margate, N.J.
A. Yes. There are no restrictions on converting a Simplified Employee Pension (SEP)-IRA to a Roth IRA. It’s basically the same as converting from a traditional IRA. Due to a recent law change, you can now also convert assets in other employer plans, such as a 401(k), directly to a Roth (see "401(k)-to-Roth rollovers: Make your move now in one step").
Tip: A Savings Incentive Match Plan for Employees (SIMPLE)-IRA may be converted to a Roth IRA, but only after you’ve participated in the SIMPLE for at least two years.