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SEP IRA to i401k

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  • SEP IRA to i401k

    My wife is a doc who was previously working on a 1099. However she now has a new job and is payed on a w2, but since she is part time she cannot contribute to a 401k.

    I would like to open a back door Roth for her, however she currently has a SEP IRA, and I was wondering if I can roll that into an i401k using her EIN from her prior job. She currently has about 28k in the SEP but doesn’t currently have any 1099 income.

    Thanks for any advice.

  • #2
    A self-employed individual with current or any prior self-employed earned income can adopt a 401k.

    However, such an individual with a 5305-SEP IRA can not adopt a 401k for a tax year they have made SEP IRA contributions for.

    Once a one-participant 401k has been adopted, a SEP IRA can be rolled over if the one-participant 401k provider accepts such a rollovers.


    • #3
      WCICON24 EarlyBird
      Will your wife maybe have 1099 income this year or in the future? When she leaves self-employment forever, she will have to close the solo-k and r/o to IRA, Roth, new employer plan, or distribute. Of course, forever is a long time and she may not know yet, in which case, I see no problem with maintaining it (based on SR’s past advice, have to give credit).
      My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
      Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients