buddtholomew
Confused about dryer sheets
BOTH the T-IRA and SEP-IRA are my accounts. I am considering the following options:
Option 1. Roll-over SEP-IRA to OLD Fidelity 401K plan at previous employer if this is allowed. Alternatively, I can roll-over the SEP-IRA to my current employer's 401K plan at Nationwide if they accept the transaction (web search has not produced information on whether a SEP-IRA can be rolled into an old 401K).
Option 2. If #1 is achieved, then I can convert T-IRA to ROTH-IRA and pay taxes only the capital gains ($3,882 x marginal tax rate, FED and CA)
Option 3. If #1 is not permissible, then either convert a. T-IRA to ROTH-IRA or convert b. BOTH T-IRA and SEP-IRA to ROTH-IRA.
Taxes due on Option 3a. above = $6,704 * marginal tax rate, FED and CA
Taxes due on Option 3b. above = $6,704 * marginal tax rate, FED and CA + $2,339 * marginal tax rate, FED and CA
Please confirm my understanding and the tax implications for each option.
Best-
BuddOption 1. Roll-over SEP-IRA to OLD Fidelity 401K plan at previous employer if this is allowed. Alternatively, I can roll-over the SEP-IRA to my current employer's 401K plan at Nationwide if they accept the transaction (web search has not produced information on whether a SEP-IRA can be rolled into an old 401K).
Option 2. If #1 is achieved, then I can convert T-IRA to ROTH-IRA and pay taxes only the capital gains ($3,882 x marginal tax rate, FED and CA)
Option 3. If #1 is not permissible, then either convert a. T-IRA to ROTH-IRA or convert b. BOTH T-IRA and SEP-IRA to ROTH-IRA.
Taxes due on Option 3a. above = $6,704 * marginal tax rate, FED and CA
Taxes due on Option 3b. above = $6,704 * marginal tax rate, FED and CA + $2,339 * marginal tax rate, FED and CA
Please confirm my understanding and the tax implications for each option.
Best-