Contribute to a SEP IRA and convert a regular IRA to a Roth IRA.

If a taxpayer qualifies to contribute to a SEP IRA and convert a regular IRA to a Roth IRA, the taxpayer can roll the SEP IRA into a Roth IRA. This can be accomplished by making a deductible SEP IRA contribution and then converting the account to a Roth IRA. The deductible contribution and the taxable conversion offset each other, leaving the taxpayer with a zero tax liability.