AbCos18ParticipantStatus: PhysicianPosts: 1Joined: 02/07/2019
I had a SEP IRA on Dec 31st, 2018, and I am wanting to make backdoor Roth contributions for 2018 and 2019.
I am in the process of converting the SEP to a Solo 401k in order to facilitate the 2019 contribution.
I have been told that for tax year 2018 I can still contribute the $5500 to a traditional IRA (before April), and then do the Roth conversion at a later point in time without being subject to the pro rata calculation since the conversion would happen in 2019 and not 2018.
Is this true? Would I then be able to convert the 2018 and 2019 contributions at the same time?February 7, 2019 at 1:11 pm MST #189000Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 330Joined: 06/12/2017
Yes, if you get the SEP IRA rolled into your Solo 401(k) prior to the date you do the conversion, you’re good to go.
Yes, you can convert the 2018 and 2019 contributions at the same time.
Have you made sure that your Solo 401(k) custodian will permit the rollover of a SEP IRA? Not all custodians will accept SEP IRA funds.
Michael Peterson, CFP® | Faithful Steward Wealth Advisors
http://www.fswealthadvisors.com | (717) 496-0900