Please help me sort this out:
So I want to do a back door Roth for my wife (too late for '16, so for '17). She has a very small SEP-IRA with Vanguard (around $5000), which will get on the way in terms of pro rata stuff. She also has a solo 401k with Vanguard. In the future she will continue to contribute to the 401k. Now, Vanguard does not allow to roll over the SEP into a 401K (not sure why, seems silly). So what to do? Open another solo 401k elsewhere and rollover there? Or roll into a Roth, pay pro rata and forget about it, keeping everything with Vanguard? Any other good options? Sorry if this is very simplistic... I did my backdoor Roth for myself the first time in 2016 (was able to rollover my SEP into a 457 plan which I have with my employer, so that wasn't too bad). Thanks!
So I want to do a back door Roth for my wife (too late for '16, so for '17). She has a very small SEP-IRA with Vanguard (around $5000), which will get on the way in terms of pro rata stuff. She also has a solo 401k with Vanguard. In the future she will continue to contribute to the 401k. Now, Vanguard does not allow to roll over the SEP into a 401K (not sure why, seems silly). So what to do? Open another solo 401k elsewhere and rollover there? Or roll into a Roth, pay pro rata and forget about it, keeping everything with Vanguard? Any other good options? Sorry if this is very simplistic... I did my backdoor Roth for myself the first time in 2016 (was able to rollover my SEP into a 457 plan which I have with my employer, so that wasn't too bad). Thanks!
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