DW has a SEP IRA and a TIRA at Vanguard. She is fully retired with no ongoing earned income and she has no other retirement accounts except for a Roth IRA also at Vanguard. She is doing annual partial Roth conversions in addition to RMDs.
The TIRA includes a non-deductible cost basis. Our understanding is that the SEP and TIRA are treated as if they're a single IRA for IRS purposes, and therefore the cost-basis applies to the combined total of both of those IRAs. Am I correct that it makes no difference with respect to taxes or pro rata calculations whether an RMD or Roth conversion is taken from the SEP or the TIRA? Is there any reason not to rollover the SEP into the TIRA?
The TIRA includes a non-deductible cost basis. Our understanding is that the SEP and TIRA are treated as if they're a single IRA for IRS purposes, and therefore the cost-basis applies to the combined total of both of those IRAs. Am I correct that it makes no difference with respect to taxes or pro rata calculations whether an RMD or Roth conversion is taken from the SEP or the TIRA? Is there any reason not to rollover the SEP into the TIRA?
Statistics: Posted by Rocinante Rider — Tue Sep 24, 2024 4:45 pm — Replies 0 — Views 82