SEP IRA

Posts Tagged ‘simple ira sep’

Question: I have a SIMPLE IRA Account that I want to transfer to another broker. What kind of IRA account do I need?

I worked for CPA and I have a SIMPLE IRA. We had 3 employees. My money was invested through First Allied where trades cost $50 and there was a $30 yearly fee.

Now I am unemployed and I want to move my account without any tax implications. I am trying to open a IRA with www.optionshouse.com. I can either open a Traditional IRA or a SEP IRA. Which do I choose? I don’t ever really plan on working for myself.

Can I convert it to a Roth IRA? How do I do this myself?

Answer: you would open either an IRA rollover or a traditional IRA. You would only open a SEP IRA if you were self employed.

You can convert to a Roth IRA at a later date if you like. You would have to contact the company where the IRA is held and ask for the appropriate forms. Remember, the year you convert from an IRA to a Roth, the amount you convert is taxable as income for the year.

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