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Originally Posted by zman
It's that time of the year again when I come back to BC for this thread 
Form 8806 has to do with changing capital structure of the corporation. Is this the correct form? if so do you need to convert the monetary amount to stocks?
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At work but I had to reply to this.
That was a typing mistake form is 8606 but when u file in turbo tax ..it should automatically generate it.
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If you have separate 401K and SEP accounts, and want to convert only the SEP account to Roth IRA, will you be able to maintain both accounts separately?
From what I understood you'll have to roll over the SEP account into 401K and then convert 401K to Roth IRA. So you will no longer have 401K. Is that what you're doing?
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No man no.
If u want to convert sep ira to roth ira. Just do the conversion . You will have to pay taxes on the whole amount for it that's all. 401k shouldnt be involved .
But If u want to avoid paying taxes then u can roll over ur SEP IRA to 401k.
Then put NEW MONEY into a traditional account and then convert that traditional account to roth if u are ineligible to directly put money to roth due to high income . This is called backdoor.
But it sounds to me like u just want to convert ur SEP IRA to roth . Then u just convert and pay taxes . And yes 401k remains separate .