Hi Macuser_22
I have question on below for MEGA Backdoor ROTH.
"For a backdoor Roth to work, your IRA (that is the aggravate value of all Traditional, SEP and SIMPLE IRA accounts) must have a starting value of zero and year end value of zero."
1. Does it mean in says 2020 I transfer all SEP, Traditional IRA to Solo 401K, then in 2021 "starting value of zero and year end value of zero." this will be true or. in 2020 itself I can do above.
I have question for MEGA BACKDOOR ROTH IRA. Would you be able to answer, how does it work.
I am Self employed and from prior year I have SEP-IRA, Traditional IRA, Roth IRA, Solo-401K account.
Here is what I am trying to do. I want to contribute to MEGA BACKDOOR ROTH IRA. I am contribute max to tax-deferred Solo 401K. To contribute remaining amount (say 20K) upto 56K limit, what is right way to do it.
1. Transfer existing SEP-IRA, Traditional IRA to Solo 401K
2. Contribute to Solo 401K (tax deferred limit)
3A. Contribute 20K to Solo 401K Roth
or
3B. Contribute 20K to Solo 401K and convert 20K to Individual Roth IRA.
Thanks
