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Re: backdoor roth the long way

Form 8606 handles the prorata calculation of IRA basis and the way it works is that it asks for the value of all Traditional IRAs, Rollover IRA, SEP-IRA, SIMPLE-IRA as of Dec 31 of the tax year. As long as you have zero balance in your TIRA and SEP-IRA accounts on Dec 31, 2014, you're good to go wi...
by whitecliff
Mon May 12, 2014 11:58 am
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth the long way
Replies: 2
Views: 270

backdoor roth the long way

ok so I was erroneously recommended to open a SEP IRA a few years ago. I then found out I could invest more money using an individual 401k. I opened the i401k and maxed it out. I then found out about the backdoor roth but due to having the SEP it would have triggered the pro rata rule. Being with va...
by whitecliff
Mon May 12, 2014 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth the long way
Replies: 2
Views: 270

Re: not another backdoor ROTH question!!!!

you mean roll both the SEP and solo 401k into a new solo 401k at fidelity? ... I know I could just as easily do a three index fund portfolio with 3 funds and rearrange each year Yes and do just that. I would prefer to stay with vanguard and in a target date fund if possible. I am more asking about ...
by whitecliff
Tue Feb 04, 2014 8:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: not another backdoor ROTH question!!!!
Replies: 8
Views: 492

Re: not another backdoor ROTH question!!!!

you mean roll both the SEP and solo 401k into a new solo 401k at fidelity? ... I know I could just as easily do a three index fund portfolio with 3 funds and rearrange each year Yes and do just that. I would prefer to stay with vanguard and in a target date fund if possible. I am more asking about ...
by whitecliff
Tue Feb 04, 2014 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: not another backdoor ROTH question!!!!
Replies: 8
Views: 492

Re: not another backdoor ROTH question!!!!

Is there a better way to do this? Just leave the solo 401k at Fidelity. It's better in the long run because you can buy Spartan Funds Advantage shares and ETFs at lower ERs than the Investor shares at Vanguard. you mean roll both the SEP and solo 401k into a new solo 401k at fidelity? The problem i...
by whitecliff
Tue Feb 04, 2014 4:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: not another backdoor ROTH question!!!!
Replies: 8
Views: 492

not another backdoor ROTH question!!!!

I have posted about my situation a few times but need to make sure this is best way to go before I take the leap. I have a SEP-IRA and a solo 401k through vanguard. As most people know vanguard will not accept a rollover of a SEP into a solo 401k, but fidelity will. If I do this I will have to creat...
by whitecliff
Tue Feb 04, 2014 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: not another backdoor ROTH question!!!!
Replies: 8
Views: 492

Re: any good funds in this list

This plan doesn't say directly that it is a governmental 457 plan, but it does refer a lot to rolling over (among other things concerning) "another governmental 457" into this plan...so it would appear to be a 457 plan? It doesn't make the index fund expense ratios easy to find, but they ...
by whitecliff
Mon Sep 23, 2013 8:31 am
 
Forum: Investing - Help with Personal Investments
Topic: any good funds in this list
Replies: 10
Views: 952

Re: any good funds in this list

I think this is what you mean: This is a retirement plan run by the State of Arkansas, in which you can contribute $17,500 / year. The plan would be funded from income received from a dental medicaid program (you are the dentist here), but you haven't committed to this plan and are wondering how to...
by whitecliff
Sun Sep 22, 2013 10:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: any good funds in this list
Replies: 10
Views: 952

Re: any good funds in this list

What is a dental medicaid program? Never heard of that before. You need to list the expense ratios, but looking at the list, I'd say funds with "Index" are ones that are going to be the ones I pick. they have dental medicaid in our state for people who qualify. I am a dentist. I only see ...
by whitecliff
Sun Sep 22, 2013 10:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: any good funds in this list
Replies: 10
Views: 952

any good funds in this list

I am thinking about participating in a dental medicaid program through the government that will allow you to defer 17,500 a year of payments into these funds and it does not affect any of your other investments maximums. I am currently about 90/10 equities to bonds and am 30 years old. I am in it fo...
by whitecliff
Sun Sep 22, 2013 9:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: any good funds in this list
Replies: 10
Views: 952

Re: is this legal/allowed? [Contribute to Solo 401k and SEP]

As others have mentioned, make sure the 401k you set up allows for rolling over outside retirement plan assets, such as a SEP. Vanguard solo 401k does not allow this. Yes I really want to stay with vanguard so fidelity will accept SEP to 401k transfers which vanguard will not. But vanguard will acc...
by whitecliff
Mon Jul 15, 2013 11:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: is this legal/allowed? [Contribute to Solo 401k and SEP]
Replies: 19
Views: 1377

Re: is this legal/allowed? [Contribute to Solo 401k and SEP]

but as I begin to be able to contribute my max to this plan I learned (from this site) that I was missing out on the 17,500 employEE contributions. Ummmm, are you talking about the salary deferral amount? That is available to both 401k and SEP-IRA plans. I was under the assumption that SEP IRA only...
by whitecliff
Mon Jul 15, 2013 10:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: is this legal/allowed? [Contribute to Solo 401k and SEP]
Replies: 19
Views: 1377

Re: is this legal/allowed? [Contribute to Solo 401k and SEP]

I see no reason to have a SEP-IRA and a Solo 401K I completely agree. As I said earlier the SEP was started for me a while ago and recently opened the solo 401k. I will eventually roll the SEP into a 401k at fidelity and then roll it back into vanguard. Vanguard does not accept SEP to 401k rollover...
by whitecliff
Mon Jul 15, 2013 7:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: is this legal/allowed? [Contribute to Solo 401k and SEP]
Replies: 19
Views: 1377

Re: is this legal/allowed?

You can only contribut to your SEP-IRA + solo 401K with income from your business I understand this but was just making sure if you are a W2 employee you can still hold these two plans and contribute to them if you have another small business on the side. why do you have both a SEP-IRA and a solo 4...
by whitecliff
Mon Jul 15, 2013 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: is this legal/allowed? [Contribute to Solo 401k and SEP]
Replies: 19
Views: 1377

Re: is this legal/allowed?

I currently have a small business and have a SEP IRA and a solo 401k. I am going to be joining another business as an employee that has no retirement program. Even though I will no longer be operating my business sometimes it takes 2-8 months for money to come in from insurance companies so it will...
by whitecliff
Sun Jul 14, 2013 8:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: is this legal/allowed? [Contribute to Solo 401k and SEP]
Replies: 19
Views: 1377

is this legal/allowed? [Contribute to Solo 401k and SEP]

I currently have a small business and have a SEP IRA and a solo 401k. I am going to be joining another business as an employee that has no retirement program. Even though I will no longer be operating my business sometimes it takes 2-8 months for money to come in from insurance companies so it will ...
by whitecliff
Sun Jul 14, 2013 7:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: is this legal/allowed? [Contribute to Solo 401k and SEP]
Replies: 19
Views: 1377

Re: solo 401k or solo roth 401k???

It really comes down to your marginal tax rate now vs your effective tax rate on the IRA withdrawals later. So you're making $250K and putting $50K of it into a 401K. Let's assume you're married, so your tax bracket is probably 28%. Add in 5% for state and your marginal is probably 33%. I don't kno...
by whitecliff
Mon Jul 08, 2013 12:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: solo 401k or solo roth 401k???
Replies: 8
Views: 433

Re: solo 401k or solo roth 401k???

Vanguard's solo 401K does not let you roll a SEP-IRA into it but other solo 401Ks may. Yes I have looked into this on these forums and it looks like if I am hardcore vanguard then you can roll the current SEP into fidelity (which will accept this kind of transfer), and then move it right back to va...
by whitecliff
Mon Jul 08, 2013 8:54 am
 
Forum: Investing - Help with Personal Investments
Topic: solo 401k or solo roth 401k???
Replies: 8
Views: 433

Re: solo 401k or solo roth 401k???

I'm not sure I followed all of the gyrations you outlined, but let me say this if you go with the Vanguard (VG) individual 401K product you get to pick whether the contribution is Roth (EE contributions only) or traditional (EE or ER contribution) at the time of contribution. I understand this part...
by whitecliff
Sun Jul 07, 2013 10:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: solo 401k or solo roth 401k???
Replies: 8
Views: 433

solo 401k or solo roth 401k???

Ok so I have posted a few times asking questions of how to get my financial house in order and have learned a ton from you guys. I have a business right now in which I am the only employee. This year I should be paid about 250k of which I have basically no overhead. I really should be an employee bu...
by whitecliff
Sun Jul 07, 2013 9:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: solo 401k or solo roth 401k???
Replies: 8
Views: 433

Re: downside to buying VG funds from fidelity in solo 401k?

Majormajor78 wrote:There is a page on the wiki that specifically goes over Boglehead style investing at Fidelity as well as a Fidelity vs. Vanguard fund comparison.

http://www.bogleheads.org/wiki/Fidelity


thanks going to look at it
by whitecliff
Sun Jun 16, 2013 9:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: downside to buying VG funds from fidelity in solo 401k?
Replies: 8
Views: 502

Re: downside to buying VG funds from fidelity in solo 401k?

Duckie wrote: [*]Once you move the SEP-IRA into the solo 401k at Fidelity you could then roll the solo 401k over to Vanguard. That type of rollover is allowed. This made me laugh. Is this not a legitimate option? If not, please explain. They don't offer much to a value investor though. Not sure wha...
by whitecliff
Sun Jun 16, 2013 6:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: downside to buying VG funds from fidelity in solo 401k?
Replies: 8
Views: 502

Re: downside to buying VG funds from fidelity in solo 401k?

Once you move the SEP-IRA into the solo 401k at Fidelity you could then roll the solo 401k over to Vanguard. That type of rollover is allowed. How would this help me accomplish the backdoor roth? Because all the taxable income from the sep is in the 401k I could then open a nondeductible Ira and th...
by whitecliff
Sun Jun 16, 2013 6:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: downside to buying VG funds from fidelity in solo 401k?
Replies: 8
Views: 502

downside to buying VG funds from fidelity in solo 401k?

I have posted several times recently and I have learned alot and I think I am getting my retirement portfolio going on the right track. My last piece of info I need to sort out is about my solo 401k and utilizing the backdoor roth IRA conversion. I currently have a SEP-IRA with vanguard and want to ...
by whitecliff
Sun Jun 16, 2013 5:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: downside to buying VG funds from fidelity in solo 401k?
Replies: 8
Views: 502

Re: should I sell my old franklin funds and transfer vanguar

[/quote]That would be my recommendation also.At age 30,LS Growth (80/20) would be my choice.[/quote]


Is the only reason this is preferred is less stock exposure?
by whitecliff
Fri Jun 14, 2013 9:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: should I sell my old franklin funds and transfer vanguard?
Replies: 21
Views: 1231

Re: should I sell my old franklin funds and transfer vanguar

as I said before not sure about my risk tolerance but looking through the retirement funds it doesnt appear that the risks are that different for each fund. target 2045 fund 90/10 (stock/bond) target 2040 fund 90/10 target 2035 fund 86/14 target 2030 fund 78/22 Is it just me or does it seem that all...
by whitecliff
Fri Jun 14, 2013 10:17 am
 
Forum: Investing - Help with Personal Investments
Topic: should I sell my old franklin funds and transfer vanguard?
Replies: 21
Views: 1231

Re: should I sell my old franklin funds and transfer vanguar

I have already rolled them into my SEP with vanguard under a brokerage account. So selling them and buying vanguard funds will be easy. I just turned 30. I just chose that fund due to the date coinciding with when I want to retire/ slow down. I don't necessarily have a risk tolerance right now becau...
by whitecliff
Thu Jun 13, 2013 11:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: should I sell my old franklin funds and transfer vanguard?
Replies: 21
Views: 1231

Re: should I sell my old franklin funds and transfer vanguar

So if I can sell these off and transfer to the vanguard target retirement fund without triggering a taxable event and keep within my SEP, would this be the best option?
by whitecliff
Thu Jun 13, 2013 11:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: should I sell my old franklin funds and transfer vanguard?
Replies: 21
Views: 1231

Re: should I sell my old franklin funds and transfer vanguar

Are these funds in a regular account or in a tax sheltered account (like an IRA)? If it's a regular taxable account what kind of capital gains do you have? What is your tax bracket? they are in a SEP-IRA. To be terribly honest I don't know what tax bracket I am in but we are married and filling joi...
by whitecliff
Thu Jun 13, 2013 11:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: should I sell my old franklin funds and transfer vanguard?
Replies: 21
Views: 1231

should I sell my old franklin funds and transfer vanguard?

Ok so still very new to the investing thing. I used an advisor right out of school who sold me some A shares of some franklin templeton funds. I have about 40k worth of these funds. I am currently now purchasing only Vanguard Target retirement fund 2045. I know some people say target retirment funds...
by whitecliff
Thu Jun 13, 2013 10:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: should I sell my old franklin funds and transfer vanguard?
Replies: 21
Views: 1231

Re: beginner here, maxed out my SEP-IRA...now what?

you can keep both the SEP and the 401k going at the same time, but the employER space is the same - you don't get to double it So can you contribute to both of these accounts at the same time? I was under the impression you cannot do this. Or is it that you just cannot count the same money as emplo...
by whitecliff
Tue Jun 04, 2013 2:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: beginner here, maxed out my SEP-IRA...now what?
Replies: 12
Views: 740

Re: beginner here, maxed out my SEP-IRA...now what?

do a Self-Employed (Roth) 401(k) at Vanguard! I was about to set one of these up but since I am looking at buying a practice then it would not be applicable for that situation so I didnt want to set it up and then have to dissolve it after a few moths. I did not know it could be administered throug...
by whitecliff
Tue Jun 04, 2013 11:00 am
 
Forum: Investing - Help with Personal Investments
Topic: beginner here, maxed out my SEP-IRA...now what?
Replies: 12
Views: 740

Re: beginner here, maxed out my SEP-IRA...now what?

Worried in what way, like an audit? correct as an example and this may not apply to you but if you are doing job x which normally pays a person 100k per year but are paying yourself a salary of 20k and taking 80k in distributions/dividends then its very unlikely this will fly and it will attract at...
by whitecliff
Tue Jun 04, 2013 10:35 am
 
Forum: Investing - Help with Personal Investments
Topic: beginner here, maxed out my SEP-IRA...now what?
Replies: 12
Views: 740

Re: beginner here, maxed out my SEP-IRA...now what?

Worried in what way, like an audit?
by whitecliff
Mon Jun 03, 2013 10:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: beginner here, maxed out my SEP-IRA...now what?
Replies: 12
Views: 740

beginner here, maxed out my SEP-IRA...now what?

ok I am a complete newbie to investing but here is my story. My wife and I are both 30. We are completely debt free. paid off over 300k in school debt in about 2.5 years. we own both of our cars. we have no credit card debt. We rent and pay 1250 a month. We live very much below our means. We both ow...
by whitecliff
Mon Jun 03, 2013 9:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: beginner here, maxed out my SEP-IRA...now what?
Replies: 12
Views: 740

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