Transfer "In Kind" from SEP IRA to Self Employed 401k

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Transfer "In Kind" from SEP IRA to Self Employed 401k

Post by psriniva »

Hi All,
Hoping you can help me!
I am trying to move my assets from SEP IRA at Merrill to Self Employed 401K at Fidelity. For both accounts, the ownership company name and administrator name are identical.
I am doing this to enable future back door Roth conversions as I found out recently through this forum that SEP IRA balances will prevent one from back door Roth contributions.
But Fidelity is saying that I have to sell the ETF's in Merrill SEP IRA, bring cash over to Fidelity and then buy the ETFs in Fidelity SE 401K.
I have 2 accounts at Fidelity.
1. Rollover IRA
2. Self Employed 401K. (newly opened just a few weeks ago)

One Fidelity rep suggested that I can do this in 2 steps:
1. move In Kind from Merrill SEP IRA to Fidelity Rollover IRA
2. move In Kind from Fidelity Rollover IRA to Fidelity Self Employed 401K.
But another Fidelity rep is saying that even this is NOT possible.

Any ideas how I can accomplish this transfer "In Kind".
I am just hoping to avoid the round trip bid ask spreads etc.
Thanks in advance.
Science has nothing in common with religion. Facts and miracles never did and never will agree. - Robert G. Ingersoll
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