SEP IRA

Posts Tagged ‘sep ira roth conversion’

Question: Can I roll a SEP IRA into a Roth?

I want to roll a SEP IRA into a Roth to make it easier to manage. I don’t have a problem paying tax on the amount rolled over. But I don’t want it to affect the annual amount I can contribute to the Roth which is $4,000. Is this possible?

Answer: For ease of rollover,
check with those who have your IRA now.

Rollovers usually are tax free transactions.

check out: – www.irs.gov – for all free forms and instructions, plus use their search sections – to get your specific questions answered.

GOD bless.
CPA-retired

Using your Roth-IRA or SEP-IRA for Real Estate Investment

Question: Due to homeowner fire loss converted SEP IRA to Roth IRA. Then insurance paid settlement for lost items. ?

My question is related to the conversion of SEP IRA to Roth IRA. For the 2008 tax return, due to fire loss, I converted my SEP IRA to Roth IRA. Later the insurance company settled our law suit and paid our lawyer the fire damages. Now is my Roth IRA valid or what?

Answer: Your question doesn’t make sense to me. You converted an IRA to a Roth and paid the income tax. Done deal.

You had a casualty loss. If you did not expect any further insurance, you would have calculated your loss for tax purposes and claimed it o n form 4684 and schedule A, thus lowering your income. If your losses were huge, you could have been in a 0% tax bracket, making it a good time to convert an IRA to a ROTH as you might not have to pay much in tax.

In 2009, you now receive the insurance money. This is called a recovery because you claimed the loss on a prior return. You must now add the money that you previously deducted to line 21 of the current year’s return.

Pinnacle Advisory Group – Roth Conversions with Jake Mason and William Bissett