Hi,
I am an independent contractor physician with an LLC and a SEP IRA currently managed by an advisor. I plan to switch to an individual/solo 401k at Vanguard that I manage, but Vanguard doesn't allow SEP IRA to solo 401k rollovers. I called Vanguard and they recommended the following:
Transfer SEP-IRA to a SEP-IRA at vanguard and just let it sit - no more contributions. Open a new solo 401k for new contributions.
Does that sound right? The guy on the phone didn't know of any downsides.
Alternatively, I have heard of some people transferring their SEP IRA to Fidelity (which allows such rollovers) and then transferring it to Vanguard.
I'm not sure how that would work. I'm assuming that the funds stay as cash at Fidelity until it can be transferred to Vanguard to avoid any short-term volatility and avoid any fees (some funds have fees if you hold them for less than a year, right?). Does that sound preferable?
Any advice is appreciated!
I have my asset allocation pretty much chosen after doing a decent bit of reading in the last few months, but am not sure on these technical details.
Thanks,
dmlr
I am an independent contractor physician with an LLC and a SEP IRA currently managed by an advisor. I plan to switch to an individual/solo 401k at Vanguard that I manage, but Vanguard doesn't allow SEP IRA to solo 401k rollovers. I called Vanguard and they recommended the following:
Transfer SEP-IRA to a SEP-IRA at vanguard and just let it sit - no more contributions. Open a new solo 401k for new contributions.
Does that sound right? The guy on the phone didn't know of any downsides.
Alternatively, I have heard of some people transferring their SEP IRA to Fidelity (which allows such rollovers) and then transferring it to Vanguard.
I'm not sure how that would work. I'm assuming that the funds stay as cash at Fidelity until it can be transferred to Vanguard to avoid any short-term volatility and avoid any fees (some funds have fees if you hold them for less than a year, right?). Does that sound preferable?
Any advice is appreciated!
I have my asset allocation pretty much chosen after doing a decent bit of reading in the last few months, but am not sure on these technical details.
Thanks,
dmlr
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