Roth conversion

[holawhatup1]

I have an existing traditional IRA (rolled over from previous 401k) and a SEP-IRA. Can I convert both of these into a Roth IRA? Will that avoid pro-rata if I do both and for the full amounts?

[FiveK]

holawhatup1, welcome to the forum.

I have an existing traditional IRA (rolled over from previous 401k) and a SEP-IRA. Can I convert both of these into a Roth IRA?

Yes.

Will that avoid pro-rata if I do both and for the full amounts?

Yes, but at the cost of incurring full taxation of amounts that pro-rata would only tax partially.

That is, if you are referring to pro-rata taxation in the context of the Backdoor Roth process.

[retiredjg]

I have an existing traditional IRA (rolled over from previous 401k) and a SEP-IRA. Can I convert both of these into a Roth IRA? Will that avoid pro-rata if I do both and for the full amounts?

Welcome to the forum.

Both a traditional IRA and a SEP IRA can be converted to Roth. I'm not sure if a SEP IRA at a current employer can be converted to Roth or if you have to wait until you leave that employer.

"Pro-rating" only exists if you have some basis (already taxed money, usually from a non-deductible contribution) in IRA. If you have not made any non-deductible contributions to the rollover traditional IRA there should not be any basis.

If there is no basis, you can convert as much or as little of the traditional IRA as you want - no pro-rating.

Whether you should convert anything to Roth depends on a lot of things, especially your current tax bracket.