401k Rollover into a SEP IRA?
Client plans to contribute to his SEP-IRA for several years. He wants to consolidate his retirement plans. What are the pros and cons of moving via direct transfer client’s 401k plan to his SEP-IRA?
Do you recommend opening an IRA and keep the SEP funds separately?
Permalink Submitted by Alan - IRA critic on Wed, 2021-05-12 15:45
Pros – one less account. Cons – possible inability to roll the SEP IRA into a qualified employer plan in the future, which would impair the back door Roth strategy if client needs to apply it.