IRA question

[seahorse21]

Hi, I live in Pennsylvania, and I'm seeking advice about two types of IRAs. I currently have a personal Roth IRA. My employer wants to enroll me in their SEP IRA. My question is, can I 'roll over' a contribution that the employer makes to the SEP into my Roth IRA (as long as the amount is within the legal limits of contribution)?

Thanks,
seahorse21

 

[DrewfromCA]

What you are talking about is a roth conversion, and it will be fully taxable in the year it is done. Since the SEP allows tax deferral, it might be best to stick with that, and just keep your Roth where it is. Of course, that is just an opinion.

 

[seahorse21]

Hi, Drew,

Thanks for your feedback. Since posting, I've discussed the situation with several other people and they have come to the same conclusion.

Best,
seahorse21