Can you convert a SEP-IRA into a Roth? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Can you convert a SEP-IRA into a Roth?

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in Leaders & Managers,Management Training

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.

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