EyeGuyMDParticipantStatus: PhysicianPosts: 2Joined: 04/29/2019
My wife has a rollover IRA from prior employer, that’s about $7500. I’d like to make backdoor roth contributions later this year, and so my understanding is that I’ll need to convert that rollover IRA, in order to do my backdoor roth contributions.
My wife has an independent business, and could set-up an individual 401k.
So, which account should I convert the rollover IRA to:
1. Open an individual 401K through her business
2. Open a Roth IRA (the same one, I would plan to use for backdoor roth contributions). If I convert the rollover IRA funds ($7500) to this account, will that limit the amount that I can later contribute to this account through the backdoor roth (the max $1100 for myself and spouse)?
Thanks all for the great advice.May 9, 2019 at 1:20 pm MST #213498PedsParticipantStatus: PhysicianPosts: 3614Joined: 01/08/2016
yes open solo 401k.
then move IRA to solo 401k.
then open a tIRA w/ 6K. open a rIRA.
then convert the tIRA to a rIRA.May 9, 2019 at 2:04 pm MST #213519mb(a)CPAParticipantStatus: AccountantPosts: 7Joined: 04/01/2019
Just so that everyone knows, the ability to do a backdoor Roth IRA is determined individually for each person. So the poster could still do one for himself even if let’s say the rollover IRA amount for his wife was too big to justify paying taxes on currently to convert and a good rollover option was not available.May 9, 2019 at 6:43 pm MST #213578