About 5 years ago, I was using a tax person to help with filing. I started using TurboTax for lower costs.
During that time, he was sponsoring two yearly actions. 1) opened a SEP IRA, and contributed to that based on my income from consulting, outside of my primary job. 2) Yearly "Backdoor Roth conversion" where I have an traditional IRA account which is empty, but yearly contribute non-deductible money to, and then convert into a Roth IRA that was opened.
So I have 3 accounts in play:
1) SEP account- recieves 2-5K yearly, value around 30K
2) traditional IRA account- empty usually
3) Roth IRA- has about 40K in it now.
As I was preparing to do this, I began reading and I worry that the yearly Roth conversions, which I thought were non-deductible, might not have been permissible because I have a SEP IRA. (The SEP may have actually lost money over time, not sure).
can anyone clarify how this works, or how to sort it out?
