Hello,
I am about to close my SEP-IRA for my biz and change to a solo 401K.
I believe Vanguard's solo 401K:
1) allows for roll-overs, so I can roll the SEP-IRA (which is already at vanguard) into the solo 401K
2) allows for admiral shares
3) allows for Roth IRA
4) does not allow for megabackdoor roth
I want to be able to also contribute to a backdoor Roth, however, I currently have about $50K in a Traditional IRA (have not invested money into this IRA in >2yrs).
What options do I have to avoid the pro-rata rule?
1) convert the entire T-IRA ($50K) to Roth IRA and pay the long-term capital gains now?
2) ??
3) ??
Thanks for any input or thoughts.
ps - Will not be doing any of this until 2023.
I am about to close my SEP-IRA for my biz and change to a solo 401K.
I believe Vanguard's solo 401K:
1) allows for roll-overs, so I can roll the SEP-IRA (which is already at vanguard) into the solo 401K
2) allows for admiral shares
3) allows for Roth IRA
4) does not allow for megabackdoor roth
I want to be able to also contribute to a backdoor Roth, however, I currently have about $50K in a Traditional IRA (have not invested money into this IRA in >2yrs).
What options do I have to avoid the pro-rata rule?
1) convert the entire T-IRA ($50K) to Roth IRA and pay the long-term capital gains now?
2) ??
3) ??

Thanks for any input or thoughts.
ps - Will not be doing any of this until 2023.
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