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  • reverse rollover

    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.

  • #2

    1. It doesn't sound as if they are asking for evidence, just notifying you of the rules.

    2. I think this is simply a CYA statement for Fidelity. Note that it says "...you may be..." (emphasis added)


    Unless Fidelity can provide more insight as to their requirements, I think you may be overthinking this.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Take note, for what its worth, that Obama's budget proposal again includes elimination of the backdoor Roth.  Will it pass?  Unlikely, but Republicans are more concerned about cutting spending and reducing the deficit and this provision could easily squeeze through during reconciliation.  it also shows that it is high on the liberal radar screen for sticking it to the so called wealthy.  I hope I have decades more of backdoor Roths in my future but I wouldn't count on it.  Look how quick the SS "file and suspend" and stretch IRA maneuvers were eliminated without so much as a notice from the Republican congress.

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      • #4


        Look how quick the SS “file and suspend” and stretch IRA maneuvers were eliminated without so much as a notice from the Republican congress.
        Click to expand...


        I don't know anything about stretch IRAs being eliminated. File and suspend (as of 4/30/16) and restricted applications were axed.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

        Comment


        • #5
          update-  Thanks for the info.  Got the response from Fidelity and, yes, jfox you were on the money about both.  Onward with retirement planning.

           

          Thanks again!

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