Converting a SEP IRA to a Roth

Discussion in 'Professional Trading' started by Toonces, Aug 22, 2006.

  1. Toonces

    Toonces

    Let's say your goal is to get over $25K into a Roth IRA, so you can daytrade the IRA tax-free in a margin account, with IB for example. (Yes, there are margin IRA accounts, just no shorting or borrowing.) At $4K contribution per year max, it's going to take quite a while to build up to over $25K.

    What if instead you started a SEP IRA, contributed the max for 2006 (which I think is like $44K), then converted it to a Roth? Is this legal?