Hello everyone,
Long time reader but rarely post. I have a variation of frequently discussed topic.
Briefly, I have traditional IRA and SEP-IRA totaling 15200 for myself and traditional IRA totaling 11K for my wife. I don't qualify for 2017 to make any additional traditional IRA contributions due to my income; so I want to start making backdoor Roth. But of course I have to empty out all three of these accounts before I can do that. Here comes the question. I have 2 options:
1st option: Roll over all of this into a 401K so that I don't have to pay taxes in the process of conversion. I have a vanguard individual 401K that doesn't accept these transfers. So should I use fidelity, etc? Any suggestions. Can I have 2 separate individual 401k accounts?
2nd option: Take the hit and convert all of this into roth now. How would I do this? How much taxes would I have to pay in order to make this money into roth?
Which of these 2 options is preferable?
2nd unrelated question is: I have individual 401K; WCI often writes that the max contribution is 25% of the earnings + 18K, not to exceed 52K. But my accountant (who is good btw) says that I can only contribute 18K. I tried to tell him that this is not employer-sponsored etc, but he still keeps insisting that 18K is the max. Any help please.
Long time reader but rarely post. I have a variation of frequently discussed topic.
Briefly, I have traditional IRA and SEP-IRA totaling 15200 for myself and traditional IRA totaling 11K for my wife. I don't qualify for 2017 to make any additional traditional IRA contributions due to my income; so I want to start making backdoor Roth. But of course I have to empty out all three of these accounts before I can do that. Here comes the question. I have 2 options:
1st option: Roll over all of this into a 401K so that I don't have to pay taxes in the process of conversion. I have a vanguard individual 401K that doesn't accept these transfers. So should I use fidelity, etc? Any suggestions. Can I have 2 separate individual 401k accounts?
2nd option: Take the hit and convert all of this into roth now. How would I do this? How much taxes would I have to pay in order to make this money into roth?
Which of these 2 options is preferable?
2nd unrelated question is: I have individual 401K; WCI often writes that the max contribution is 25% of the earnings + 18K, not to exceed 52K. But my accountant (who is good btw) says that I can only contribute 18K. I tried to tell him that this is not employer-sponsored etc, but he still keeps insisting that 18K is the max. Any help please.
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