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Hello,
Would appreciate any input.
I am trying to execute a reverse rollover at Fidelity, where I have a traditional IRA and a newly opened self employed 401K (thx for the tip, WCI). This is with the goal to eventually do the backdoor Roth move. In the past, because of fluctuating salaries (resident to attending to cutting part to part time), I have contributed both deducible and non-deducible amounts into the tIRA. Now, as I am trying to do the reverse rollover, these are some of the feedback received from the desk at Fidelity. Can someone explains these to me?
1. re: "Please note only pre-tax money can be rolled into the plan account". I get that only pre-tax money can be transfers, and I have been able to track what those amounts are and what are the stocks associated with them, so do I simply provide a statement about that as I submit the request to rollover the money. I get the process but seems a little struck on the logistics part. Please help.
2. re: "When consolidating outside retirement accounts into the Self Employed 401(k), you may be required to track those assets and the earnings in your records. This would generally require that you work closely with your tax advisor." Can someone elaborate on what this statement means? If all the assets are pre-tax, why do I have to do this?
Thanks so much for any assistance.
Would appreciate any input.
I am trying to execute a reverse rollover at Fidelity, where I have a traditional IRA and a newly opened self employed 401K (thx for the tip, WCI). This is with the goal to eventually do the backdoor Roth move. In the past, because of fluctuating salaries (resident to attending to cutting part to part time), I have contributed both deducible and non-deducible amounts into the tIRA. Now, as I am trying to do the reverse rollover, these are some of the feedback received from the desk at Fidelity. Can someone explains these to me?
1. re: "Please note only pre-tax money can be rolled into the plan account". I get that only pre-tax money can be transfers, and I have been able to track what those amounts are and what are the stocks associated with them, so do I simply provide a statement about that as I submit the request to rollover the money. I get the process but seems a little struck on the logistics part. Please help.
2. re: "When consolidating outside retirement accounts into the Self Employed 401(k), you may be required to track those assets and the earnings in your records. This would generally require that you work closely with your tax advisor." Can someone elaborate on what this statement means? If all the assets are pre-tax, why do I have to do this?
Thanks so much for any assistance.
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