Personal Finance (Not Investing) • Backdoor Roth while having SEP IRA

My wife has 3 accounts with Vanguard: A traditional IRA with no balance, a Roth IRA that she’s contributed to for years, and a new as of 2024 SEP IRA. Historically we’ve done backdoor Roth conversations from the traditional to the Roth due to income limits.

I’ve read online that SEP IRAs mess up backdoor Roth conversions. Can someone explain why? Why can’t she contribute to the traditional IRA (that has no balance) and roll it into the Roth why she usually does? The money would never get mixed with the SEP IRA.

Thanks for the help.

Statistics: Posted by pnw_guy — Sat Dec 21, 2024 10:09 am — Replies 2 — Views 69

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