Timing of SEP rollover into 401(k) with Roth conversion
Alan,
I have a client who made a $53K SEP contribution for the 2016 tax year on 9/15/2017. This was a one-time contribution and he doesn’t plan to make any future SEP contributions because his company now has a 401(k) plan.
He would like to also make a $5,500 non-deductible Traditional IRA contribution for 2017 and convert the balance to his Roth IRA.
Can we roll the $53K SEP balance up into his 401(k) in the same calendar year as when the SEP contribution was made? If so, it would seem like we could then make the $5,500 IRA contribution and convert it over to the Roth without tax consequences.
Am I missing something?
Thank you,
Chris
Permalink Submitted by Alan - IRA critic on Fri, 2017-12-01 19:57
Sure, that would work as long as the 401k plan provisions allow for acceptance of IRA rollovers.