SEP Annuity and IRA basis | Ed Slott and Company, LLC

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?

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.


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