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Originally Posted by zman
1) if you have only 401K and SEP IRA and no traditional or Roth account, and you intend to take advantage of backdoor Roth, can you open a traditional IRA account and roll it over to backdoor Roth while maintaining SEP IRA account?
2) Do you happen to know the steps to allocate some portion of your Roth to crypto?
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1. No. SEP IRA is an IRA that has pre-tax money. You need to roll that over to your 401k before you can do a conversion from traditional to roth. Otherwise you will be subject to pro rata rule and will end up owing taxes on some portion of money in ur sep ira. I know u probably wrote it by mistake but the term needs to be clear not to make any mistakes. You would be doing a
convertion not
roll over of a traditional IRA (that u funded with non deductible fund due to ur high income) to a Roth IRA. The
process is called a backdoor roth. There is no such a entity as backdoor roth. It's simply roth ira.
2. I havent done it so i can't help you. I have done back door roth via fidelity and vanguard. So I can pretty much do anything that I am able to do with a regular brokerage account.. buying/selling/shorting individual stocks, options, bond, mm, funds etc etc. If the brokerage do not offer any cryptos - which none does then the process is a bit complicated where u can open self directed IRA - and have alt investments like crypto, business, real estate etc. I don't have first had experience on how to go about doing that. Previous Presidential candidate Mitt Romeny using this likely ended up having some millions of dollars in roth ira money for his family members - escaping taxes.