Help with retirement plans

[Babymd]

I currently am paid via 1099, have an S corp, 2 SEP IRAs (total 103 k) and a roth IRA which i can no longer contribute to. I am wondering if I should open up a solo 401k and rollover the SEP IRAs into it? And then do a back door Roth IRA. Do you think that would be beneficial?? How much tax would I have to pay to do that rollover?

[Docbeans]

-Open the solo 401k first (make sure you are indeed eligible for one)

-Roll over your SEP into the solo k. No taxes are due since it is still a pre-tax account.

-Open a TIRA of $5,500 (Likely non-deductible, depending on your income)

-Convert it into Roth (no taxes are due since it was post- tax money to begin with)

Done.

[nachos31]

Docbeans broke that down nicely for you. To answer your 2nd question: yes, it would be beneficial as it would allow you to do the backdoor Roth annually (your spouse can do one too, even if not earning his/her own income); that is, until Congress closes the backdoor loophole (something that may occur). In the meantime, it means you can save an additional $5500 ($6500 if older than 50) or even $11,000 including a spouse's backdoor Roth ($13,000 if both older than 50) for retirement purposes that will grow tax free and can be spent tax free in retirement. Seems beneficial to me!