I am a new WCI convert and a financial newbie who got excited about the backdoor ROTH. I am the CFO of our family unit and my husband wears the white coat. Currently he has a "regular employee job" where he contributes to a 401K an and "independent contractor gig" where he contributes to a SEP IRA. I just learned about the backdoor ROTH and in my excitement to make it before tax deadline 2016 made a contribution to an IRA and rolled it into a Backdoor Roth. In the wee hours of the morning I noticed my error and misunderstanding. I wanted to confirm: 1) I can reclassify this back into a traditional IRA by October 15th without tax penalty? 2) It makes sense for us to keep the SEP (saving around $20,000 a year pretax)rather then switching to a solo 401K (due to his employer sponsored 401K) the backdoor ROTH will just be off the table for him?
Thanks for the clarification!
Thanks for the clarification!
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