Vanguard SEP /tIRA Account

[SpaceGhost]

I've browsed for a possible answer before posting, but to no avail.

I have stopped funding my SEP and created an i401K last year and have been funding it instead.  It is my understanding that the SEP can effectively function as a tIRA now, however my MAGI is still too high.  This may sound silly, but can i fund that account anyway - not for tax benefit, but as a brokerage account?  The account balance is just under the much lower expense ratio and would like to add the additional funds to at least get the balance above that threshold so the acocunt can then have a much lower expense ratio.

Thoughts?
Thanks in advance

[jjandjab]

I would just roll the SEP IRA into a traditional IRA at the same brokerage. It should be very easy and painless. In the past two years I have done the same thing at Fidelity.  I don't think the potential tax hassle is worth it - regardless of how you are looking at it, the IRA might see you go over your max contribution amount between the 401k and SEP. Just go with the 401k and regular IRA - don't fund the SEP and not take the deduction. It will be worth a few minutes of time.

[jjandjab]

Oh, you can also roll the SEP into the 401k as well. That's another option. Generally speaking, if you are talking about index funds and expense ratios, the difference between the admiral/premium and investor shares only works out to a few dollars a year if your balance is around the 10k mark.