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Need help rolling over SEP IRA into solo 401k

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  • Need help rolling over SEP IRA into solo 401k

    Hi! I have an old SEP IRA at Vanguard with about $180k that I would like to rollover into my solo 401k with Etrade so I can start to make Backdoor Roth contributions.

    When I called ETrade to ask for help with the process, the multiple retirement specialists told me I had to initiate it with Vanguard and the Vanguard retirement specialists told me that ETrade had to initiate the process. I've tried to initiate it myself online, but keep running into walls about both companies.

    Has anyone completed this rollover before?

    Any help would be greatly appreciated!

  • #2
    I haven't with those companies, but I would just do it online/initiate it at E-Trade and then inform Vanguard (by phone) to remove any blocks they may have on the process. It should be seamless but sometimes you have to talk to a real person.

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    • #3
      If you keep running into roadblocks, you can always take a distribution of the full amount from ET then make sure to deposit to VG within the 90-day window. May not be optimal, but it will get the job done. Note that you are allowed to take a distribution from an IRA (traditional or Roth) and recontribute within 60 days only once per year.
      jfoxcpacfp
      Moderator
      Last edited by jfoxcpacfp; 11-20-2021, 03:53 AM. Reason: Correcting original error per SR’s catch: 60 not 90
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        60-day rollover, not 90 days

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        • #5
          Thanks for the help! I think I'll need to take the distribution route, so I'm glad to have confirmation that won't lead to any adverse tax events as long as I deposit it within 60 days.

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          • #6
            Originally posted by spiritrider View Post
            60-day rollover, not 90 days
            Head slap - I knew that, I did one myself this year! Thank you, SR!
            Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #7
              While the info from JFT and SR on doing an indirect rollover is absolutely correct, I have a hard time understanding why two mainline companies in VG and ETrade can't do a direct rollover. Over the years I've rolled over funds between various IRAs and 401ks with TRowe Price, Fidelity and TDAmeritrade without any difficulty. Besides the correct paperwork, the only other thing usually required was the most recent statement of the account that is being rolled over. I would think that ETrade with the VG SEP statement in hand should be willing to pull the funds to their account.

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