Sep ira rollover to ROTH IRA each yr + solo401k employee contributions allowed?

[jjfacejj]

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

[jjfacejj]

Bump - anyone?

[Bird]

I think you can do it. Somehow the idea of jumping through hoops to convert each year, or periodically, is not very appealing to me, but if you don't mind, then go for it. Since your plan is with Schwab, you might want to check out their commentary, with warnings about having nondeductible IRA contributions:

http://www.schwab.com/public/schwab/nn/articles/Roth-IRA-Conversion-Look-Before-You-Leap