topic Can I convert my SEP-IRA contributions in 2020 to a new Solo/Individual 401k? I want to only contribute to a Solo 401k given the benefits for self-employed. in Retirement tax questions

Can I convert my SEP-IRA contributions in 2020 to a new Solo/Individual 401k? I want to only contribute to a Solo 401k given the benefits for self-employed.

bmcosgro — Tue, 27 Oct 2020 23:24:17 GMT

IRS wants people to only contribute to a single retirement plan during a calendar year. I didn't realize the benefits of contributing to a Solo 401k compared to a SEP-IRA for a self-employed consultant. I can't find any info on TurboTax or IRS describing the rules of converting contributions from a SEP-IRA to a Solo 401k.

Re: Can I convert my SEP-IRA contributions in 2020 to a new Solo/Individual 401k? I want to only contribute to a Solo 401k given the benefits for self-employed.

Critter-3 — Wed, 28 Oct 2020 00:20:54 GMT

Yes you can roll it but it will NOT be considered a 401K contribution ... it is a roll over.

https://www.merrilledge.com/ask/small-business/sep-ira-rollover

Re: Can I convert my SEP-IRA contributions in 2020 to a new Solo/Individual 401k? I want to only contribute to a Solo 401k given the benefits for self-employed.

bmcosgro — Wed, 28 Oct 2020 18:47:36 GMT

Does that mean I can still contribute up to $19,500 as an employee in 2020 with a Solo 401k? I've already contributed up to my employer limit of 25% of net earnings in 2020 to the SEP-IRA.

Re: Can I convert my SEP-IRA contributions in 2020 to a new Solo/Individual 401k? I want to only contribute to a Solo 401k given the benefits for self-employed.

Critter-3 — Wed, 28 Oct 2020 19:35:58 GMT

You can make a contribution if you qualify to do so ... the roll over of old (prior year) contributions will not change that.

https://www.irafinancialgroup.com/learn-more/solo-401k/solo-401k-and-sep-ira/