Strategy for a SEP IRA

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  • Avatar Harmonica Man 
    Status: Physician
    Posts: 12
    Joined: 03/10/2019

    Hi all,

    I’m wondering what my options are for my SEP IRA.  I went with the sep instead of solo 401k since I started it after Dec 31 ’18 yet still wanted to contribute for 2018.

    Specifically I want to know the best options to roll it over before before the end of the year.  I’ll be elegible for an employer 403b and 457 starting in July, with vanguard funds available in both.  So is there any perceivable difference to just roll it into one of those (assuming the fund will accept it) verse create an individual 401k?

    #197311 Reply
    jfoxcpacfp jfoxcpacfp 
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7315
    Joined: 01/09/2016

    The 457b is out if you are employed by a NPO, which I assume you are. Otherwise, check your SPD (Summary Plan Description) to see if your 403b accepts rollovers (most do) and roll the SEP balance in.

    If your plan d/n accept rollovers you might find this article helpful: Backdoor Solo-401k’s

    The 2 perceivable differences in rolling in to work plan v. setting up a Solo-k are:

    • You maintain control of your account and
    • You have a ready receptacle for future rollouts of 401k/403b accounts should you ever change jobs

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555

    #197362 Reply
    Avatar Harmonica Man 
    Status: Physician
    Posts: 12
    Joined: 03/10/2019

    Makes sense, thanks.

    #197377 Reply

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