Just making sure my thinking is correct. Working on consolidating his retirement accounts.
He currently has:
Rollover IRA
Multiple 401Ks (currently at Fidelity, Transamerica, Wells Fargo)
Future hubs is getting ~$8,000 in 1099 income this year. He has W2 income as well for this year with some 401k contributions but not maxed out (no longer employed there, currently in between jobs). I want him to be able to do backdoor Roth (note: he might be under the income limit for this year but won't once we're married, slated for 2017). He currently has no Roth IRA.
I was thinking of this:
1) Open solo-401k, roll over all the prior 401ks and IRAs. Choosing this option so we can do backdoor Roths for him in the future.
-Which 401k plan should we use? Would love to do Vanguard (where my Roth IRA is) but they do not take roll overs right?. But, I know someone who had a SEP-IRA with Vanguard and she was able to convert it to a Solo-401k at Vanguard...so maybe that is a "backdoor" way of doing that - anyone else know about this?
-Fidelity seems to be a great choice as well and he already has an account there.
-Should we consider converting that IRA (~40K) to a Roth this year? He will be in the 25% marginal tax bracket. Once married, we will be in the 33% or 35% marginal bracket.
2) Goal is for him to get W2 job (likely soon, one in the works) so will likely have a new 401K at new job.
-Was thinking of just waiting for the new job and see if their 401k accepts rollovers. But seems like having a solo401k will be helpful for any 1099 income he may receive this year and in the future.
Thanks as always!
He currently has:
Rollover IRA
Multiple 401Ks (currently at Fidelity, Transamerica, Wells Fargo)
Future hubs is getting ~$8,000 in 1099 income this year. He has W2 income as well for this year with some 401k contributions but not maxed out (no longer employed there, currently in between jobs). I want him to be able to do backdoor Roth (note: he might be under the income limit for this year but won't once we're married, slated for 2017). He currently has no Roth IRA.
I was thinking of this:
1) Open solo-401k, roll over all the prior 401ks and IRAs. Choosing this option so we can do backdoor Roths for him in the future.
-Which 401k plan should we use? Would love to do Vanguard (where my Roth IRA is) but they do not take roll overs right?. But, I know someone who had a SEP-IRA with Vanguard and she was able to convert it to a Solo-401k at Vanguard...so maybe that is a "backdoor" way of doing that - anyone else know about this?
-Fidelity seems to be a great choice as well and he already has an account there.
-Should we consider converting that IRA (~40K) to a Roth this year? He will be in the 25% marginal tax bracket. Once married, we will be in the 33% or 35% marginal bracket.
2) Goal is for him to get W2 job (likely soon, one in the works) so will likely have a new 401K at new job.
-Was thinking of just waiting for the new job and see if their 401k accepts rollovers. But seems like having a solo401k will be helpful for any 1099 income he may receive this year and in the future.
Thanks as always!
Comment