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Learning, Sharing, and Teaching => Investor Alley => Topic started by: AdrianC on March 11, 2014, 08:19:58 AM

Title: Backdoor Roth
Post by: AdrianC on March 11, 2014, 08:19:58 AM

I just learned about this in another thread.

http://www.bogleheads.org/wiki/Backdoor_Roth_IRA

Under "Caution":
"If you have any other (non-Roth) IRAs, the taxable portion of any conversion you make is prorated over all your IRAs"

Does anyone know if this applies to a SEP-IRA too?

I have a SEP-IRA and a non-deductible IRA. It would be nice to convert the non-deductible IRA to a Roth, but not if the SEP is taken into account.

Thanks.

Title: Re: Backdoor Roth
Post by: foobar on March 11, 2014, 08:28:08 AM

They count.

Quote from: AdrianC on March 11, 2014, 08:19:58 AM

I just learned about this in another thread.

http://www.bogleheads.org/wiki/Backdoor_Roth_IRA

Under "Caution":
"If you have any other (non-Roth) IRAs, the taxable portion of any conversion you make is prorated over all your IRAs"

Does anyone know if this applies to a SEP-IRA too?

I have a SEP-IRA and a non-deductible IRA. It would be nice to convert the non-deductible IRA to a Roth, but not if the SEP is taken into account.

Thanks.

Title: Re: Backdoor Roth
Post by: AdrianC on March 11, 2014, 05:33:11 PM

That's what I thought. Never mind then. I actually have some serious gains in the non-deductible one so probably not worth it anyway.

Thanks.