AnnetteB6
Expert Alumni

Retirement tax questions

It should just be a matter of entering the Form 1099-R that will be generated when you take the distribution from the SEP-IRA and convert the funds to a Roth IRA.

 

After you enter Form 1099-R, there will be follow-up questions asking what you did with the money.  As part of those questions, you will indicate that it was converted to a Roth IRA.  You should also be asked about the basis (non-deductible contributions) of the SEP-IRA since that will determine the amount that will be included as taxable income for the conversion.  Since your basis will be zero, the entire conversion will be taxable.

 

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