I have had a traditional IRA with about $40K in it. This year I have contributed an additional $1600 thus far. I plan on transferring all of that money into a solo 401K in the next few days in order to do a backdoor Roth IRA in early January.
Steps I have taken:
1. Deposited $1600 throughout the year to a larger IRA
2. Transferring all money now to a solo 401K
On January 1st, 2018 I have a conundrum
Will I only be able to backdoor $3900 (5500-1600) given that I already contributed $1600 to the IRA during the year?
Or will I have to deposit $3900 into the traditional IRA and transfer another $1600 back out of the solo 401K into the traditional IRA?
On January 2nd, 2018 I am hoping to be able to transfer $5500 into a Roth IRA
Steps I have taken:
1. Deposited $1600 throughout the year to a larger IRA
2. Transferring all money now to a solo 401K
On January 1st, 2018 I have a conundrum
Will I only be able to backdoor $3900 (5500-1600) given that I already contributed $1600 to the IRA during the year?
Or will I have to deposit $3900 into the traditional IRA and transfer another $1600 back out of the solo 401K into the traditional IRA?
On January 2nd, 2018 I am hoping to be able to transfer $5500 into a Roth IRA
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