So I decided to pull the trigger and make the switch from a SEP IRA to a solo 401k to take advantage of the back door roth. The problem is I already fully funded my SEP IRA for 2017. I asked the guy at Fidelity customer service where I have my SEP if I could open a new solo 401k account this year and move the money from my various IRAs (SEP, traditional, rollover) into the solo 401k so I can do the roth conversion and not get impacted by the pro rata rule. He told me that because I've already funded the SEP IRA I can't open the solo 401k until next year.
I don't want to contribute any additional pre tax money into the new solo 401k - I just want to open it so I can consolidate my IRAs and allow myself to do the roth conversion without getting hit by the pro rata rule this year. Do I have to wait until 2018 or is Fidelity customer service wrong?
I don't want to contribute any additional pre tax money into the new solo 401k - I just want to open it so I can consolidate my IRAs and allow myself to do the roth conversion without getting hit by the pro rata rule this year. Do I have to wait until 2018 or is Fidelity customer service wrong?
Comment