jjfacejj

Bump - anyone?

I have a solo 401k and a SEP IRA with a prototype plan with schwab (so I can use both at the same time) - I'm a sole proprietor so no employees. I read a lot about there being no advantage to having both but isn't it the case that if I wanted roth contributions I could contribute to a sep IRA and then roll it over into a roth IRA? Sure I could have a roth 401k but that has more restrictions - mainly the inability to withdraw contributions early unless a very small number of scenarios are met. Is there anything stopping me putting my employer contributions into the SEP IRA and rolling over to a Roth IRA each year (or less frequently) and then contributing the employee portion to the solo 401k? Thank you

Okay thank you. Are there issues with terminating the 401k in 2016, rolling over to the sep ira in 2016 and then contributing to the SEP IRA for 2016?

Thank you for the reply and the correction - that makes sense. Say in 2016 I can make a $10k employer contribution into my SEP IRA OR a $10k employer plus and a $18k employee contribution to a solo401k. But I decide to terminate my 401k in 2016. Okay the first part sounds like a stupid question but I am afraid I'm going to mess something up so bear with me. If I terminate the 401K say in early 2016 and roll it over into the SEP IRA. I can still make a SEP employer contribution of $10k in 2016 right? But instead could I contribute to the 401k sometime in 2016 before termination and therefore get access to the higher full $28k limit for the 401k for that year. Then roll it over into the SEP IRA later that year? Any issues with that? Thank you again!

I have a Fidelity Solo 401k and a Schwab Prototype SEP IRA (so not using the IRS 5305-SEP agreement). I initially had the SEP for a couple of years but then my income jumped and was expected to continue indefinitely so I opened up the solo 401k. Unfortunately my income has reverted back to what it was before I set up the solo 401k (after just 2 years). I came to the conclusion that I would prefer to maintain the SEP IRA and terminate the 401k. I don't need to the higher contribution amount and appreciate the simplicity, ease of funding and accessibility of funds for the SEP. So how do I go about terminating the solo 401k and are my circumstances a good enough reason to do so? From what I have read I would: 1. Contact fidelity and amend the plan to add the termination to the plan document. 2. File a 5500EZ within 7 months 3. Rollover the 401k to the SEP IRA. Anything else? Anything to watch out for?