Self-employed client (sole proprietor -under age 50) has only a Roth IRA for retirement savings. Now that her income puts her over the Roth IRA contribution limit, she has been making back-door Roth contributions for 2018 and 2019. She would like to put more away for retirement above Roth limit for 2020, but does not want to lose the ability to contribute to a Roth via the back-door strategy.
Questions: 1) If she plans to set up a Solo 401(k) and contribute employee deferral maximum ($19,500) in 2020, can she also make a 2020 Roth contribution (via Back Door strategy) in the same year to her existing Roth IRA? 2) Whether Solo 401(k) contributions are Roth or pre-tax and without any other Traditional IRA’s, I believe the Roth IRA contribution is still not diminished by the pro-rata rule, correct?
Thank you.