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A SEP-IRA is a traditional IRA that holds contributions made by an employer under a SEP plan. You can both receive employer contributions to a SEP-IRA and make regular, annual contributions to a traditional or Roth IRA.
When it comes time to file taxes for the year you made the conversion, youll need to submit Form 8606 to notify the IRS that youve converted an account to a Roth IRA. Any money moved from a traditional account to a Roth will be treated as ordinary income and taxed ingly.
General Information: SEP-IRA and SIMPLE IRA: Employer contributions (including elective deferrals) under a SEP-IRA or SIMPLE IRA cannot be recharacterized as contributions to another IRA.
If you roll a SEP IRA into a traditional IRA, assuming you do it right, there are no taxes to pay and your money will continue to grow tax-deferred until you begin taking withdrawals. If you decide to roll it into a Roth IRA, you will owe income tax on the amount rolled over.
Use Form 8606 to report: Nondeductible contributions you made to traditional IRAs. Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs. Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
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People also ask

If you are correcting an excess contribution after your tax- filing deadline and you wish to carry forward the amount of excess contribution in subsequent years, you must file a Voluntary Correction Program (VCP) and file IRS Form 5329 (employee may be subject to 6% excise tax) and Form 5330 (employer may be subject to
No. Beginning January 1, 2018, the IRS no longer allows recharacterizations of Roth conversions. Can I choose which investments I want to recharacterize?

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