Partial Roth Conversion of Existing SEPP Plan.
L1: Partial Roth Conversion of Existing SEPP Plan.Existing SEPP / Dec. 16, 1963 / first distribution was on 01/15/2013
I am interested in slowly converting my SEPP IRA into a Roth ira over the next 10 years. After reading on the internet, it seems that a partial conversion will bust the plan. I have $300,000 in my plan and would like to convert $25,000 every year for about 10 years. Ideally, I would leave the Roth money alone and would take distributions from the SEPP IRA’s money market. I have enough money in the money market to do this, but I think this strategy would not work because there would be no withdrawals from the newly converted Roth money. Thanks for any insights you can provide.
Ed2013-12-06 14:02, By: Roth Conversion, IP: [220.127.116.11]
L2: Partial Roth Conversion of Existing SEPP Plan.Yes, you not only have the partial transfer risk, but the IRS Reg 1.408A-4 Q 12 which covers conversions in a 72t plan also uses a full transfer with the 72t distributions continuing exclusively from the Roth IRA. Why do you want to convert most of your IRA?2013-12-28 22:05, By: Alan S, IP: [18.104.22.168]
L3: Partial Roth Conversion of Existing SEPP Plan.I was hoping to do a Roth conversion ladder over the course about 6 years. I was thinking about converting about $150,000 / $25,000 a year. Having a big Roth was appealing to me.
At any rate, the thought of doing partial conversions sounds like it would be too complicated. My wife and I will build up another source of IRA, 403b and 457 money which will slowly rollover to our Roth accounts.
Thanks for the feedback.Ed2013-12-31 02:16, By: Ed Mills, IP: [22.214.171.124]