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Help! So I’m new to retirement accounts. EM IC currently. Just recently became full time IC from a W2 last year. I’ve been trying to read on WCI, but it seems like I can’t get read fast enough. I was trying to do everything correctly and even called Vanguard to have them walk me through it, but I think I messed up.
So I just started putting money into retirement in June 2020. I have a TIRA and roth for both myself and husband (stay at home dad). I previously (prior to April 2020) was a W2 and hadn’t had anything put into retirement. I had a IC job prn. So in June 2020 I put in about $9,000 into a SEP IRA (for the 2019 tax year since there was an extension) to decrease my tax burden. This was my first time ever really putting money into a retirement acoount. I had about $100 in my roth when I opened it in Residency.
In July 2020 I put $6,000 into my TIRA and $6,000 into my husband’s TIRA and did a backdoor roth. I did this because I thought I was doing it for 2019, but I know now that is not the case. So in reality I did it for 2020. I did it with a Vanguard rep walking me through it to AVOID the prorata rule, but I think that failed.
NOW I know I should just have a i401k (which I don’t have).
How do I fix this? I’ve been reading non-stop, but am afraid of making yet another mistake. I’m trying NOT to get a financial advisor because of the advice not to on here. I do have a CPA who is looking into it as well. I’m just really anxious and wanted advice from you all.
The only other thing that adds a wrench in the situation is a still need to put in $57,000 into my SEP IRA for 2020 to decrease my tax burden for 2020 (I’m full time IC now). I paid my quarterlies with the assumption I’d max out my SEP IRA for 2020.
So as of now I was thinking of maxing out my SEP IRA for 2020 with the $57,000 (since I have until April 15, 2021 to do so), pay taxes for the pro rata rule, open a i401k with Etrade or ameritrade this year (2021) and roll over my SEP IRA into my i401k and keep my TIRA/ROTHs at vanguard. I know I can’t open a i401k at Vanguard and roll over my SEP.
I also read about converting all of your SEP IRA into a Roth and paying taxes? My SEP only has about $9,000 (currently, but remember I still need to put in $57,000 for 2020). I’m just trying to come up with the best way to fix this and not make more mistakes. I’ haven’t put the $57,000 in yet until I can figure out how to avoid more mistakes. I know now I shouldn’t have opened a SEP and should have started with a i401k, but that ship has sailed. I just need to try and fix it now. Thank you all! I really appreciate it. I know this has been brought up alot before, but it was 2017/2018 and I just wanted to make sure after reading those cases I have the right idea.
-Newbie
So I just started putting money into retirement in June 2020. I have a TIRA and roth for both myself and husband (stay at home dad). I previously (prior to April 2020) was a W2 and hadn’t had anything put into retirement. I had a IC job prn. So in June 2020 I put in about $9,000 into a SEP IRA (for the 2019 tax year since there was an extension) to decrease my tax burden. This was my first time ever really putting money into a retirement acoount. I had about $100 in my roth when I opened it in Residency.
In July 2020 I put $6,000 into my TIRA and $6,000 into my husband’s TIRA and did a backdoor roth. I did this because I thought I was doing it for 2019, but I know now that is not the case. So in reality I did it for 2020. I did it with a Vanguard rep walking me through it to AVOID the prorata rule, but I think that failed.
NOW I know I should just have a i401k (which I don’t have).
How do I fix this? I’ve been reading non-stop, but am afraid of making yet another mistake. I’m trying NOT to get a financial advisor because of the advice not to on here. I do have a CPA who is looking into it as well. I’m just really anxious and wanted advice from you all.
The only other thing that adds a wrench in the situation is a still need to put in $57,000 into my SEP IRA for 2020 to decrease my tax burden for 2020 (I’m full time IC now). I paid my quarterlies with the assumption I’d max out my SEP IRA for 2020.
So as of now I was thinking of maxing out my SEP IRA for 2020 with the $57,000 (since I have until April 15, 2021 to do so), pay taxes for the pro rata rule, open a i401k with Etrade or ameritrade this year (2021) and roll over my SEP IRA into my i401k and keep my TIRA/ROTHs at vanguard. I know I can’t open a i401k at Vanguard and roll over my SEP.
I also read about converting all of your SEP IRA into a Roth and paying taxes? My SEP only has about $9,000 (currently, but remember I still need to put in $57,000 for 2020). I’m just trying to come up with the best way to fix this and not make more mistakes. I’ haven’t put the $57,000 in yet until I can figure out how to avoid more mistakes. I know now I shouldn’t have opened a SEP and should have started with a i401k, but that ship has sailed. I just need to try and fix it now. Thank you all! I really appreciate it. I know this has been brought up alot before, but it was 2017/2018 and I just wanted to make sure after reading those cases I have the right idea.
-Newbie
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