SEP Annuity and IRA basis
I have 3 SEP Annuity accounts with a combined balance of $85,000 dating back 18 years when I was self employed in another state. Are these accounts taken into account with the pro rata rule when doing an IRA recharacterization to a Roth Account?
Permalink Submitted by Alan - IRA critic on Tue, 2018-04-03 22:55
I think you are referring to a Roth conversion, not a recharacterization. SEP and SIMPLE IRAs including a SEP IRA holding an annuity are included in line 6 of Form 8606, and therefore will affect the taxable portion of a conversion.