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No Retirement Account at New Job

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  • CordMcNally
    replied
    It doesn't sound like a great situation. You may not be focusing on your retirement the first year but overlooking potential retirement plans is a pretty big thing to overlook.

    Leave a comment:


  • ZZZ
    replied
    'I am sure it is all negotiable'

    Actually, it's usually not, their plan document outlines criteria for eligibility.

    'Long term potential'

    If they're not taking advantage of no brainers like a 401k for their doctors, you've got to wonder what else about the financial side of the practice is woefully mismanaged.

    Leave a comment:


  • newdoc1
    replied
    What if I create my own LLC? And have him pay me via the LLC? Would I have to ask him to pay me via 1099? Is that even worth it?

    Leave a comment:


  • newdoc1
    replied
    he said that after I become partner, there is a one year waiting period or something before the 401k kicks in. I am sure it is all negotiable.  I mean it is not like the best offer out there, but I wanted to get my foot in the door for potential long term prospects, partnerships etc. Its my first job out of fellowship, so I wasn't focusing too much on retirement savings first year. I am probably paying down a lot of my debt anyways.

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  • HandFellow
    replied
    will you never be able to contribute to a 401k?  or is there a 1 year period of employment before you will be able to contribute?

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  • newdoc1
    replied
    I had better offers with better benefits. But I chose the practice that was a better fit, better work environment etc. I chose to sacrifice short term for better long term potential. I thought some of the intangible assets in this practice outweighed the tangible benefits in other practices.

    Leave a comment:


  • newdoc1
    replied
    I am not a sole employee. It is a group practice. I just assumed that I would be paid on a 1099, so that I could open an individual retirement account. However, it is W2 as I found out recently.

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  • newdoc1
    replied
    well the salary initially wasn't bad and the practice is good. I initially assumed that I could set up something on my own, until I talked with my accountant recently.

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  • jhwkr542
    replied
    When you find a potential job, this should be looked at from a benefits perspective. This is essentially 3-4% less salary than other jobs would have been (not even accounting for loss of tax-benefits, which would be hard to calculate). Having said that, there's nothing wrong with just having a taxable and backdoor Roth. Also don't forget HSA. Adjust savings accordingly.

    Leave a comment:


  • G
    replied
    Yeah, bummer. Hopefully your paycheck makes up for lack of benies?

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  • Peds
    replied
    Why did you take this job?

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  • CordMcNally
    replied
    What kind of practice is this? Are you a sole employee for another single physician? Being paid as a 1099 instead of a W2 isn’t quite as easy as just asking.

    Leave a comment:


  • newdoc1
    started a topic No Retirement Account at New Job

    No Retirement Account at New Job

    Hi All,

    I started my new job, and there are no retirement accounts that I am being offered. The salary is on a W2, so I am apparently not able to set up an independent 401k. What do you all think I should do? Ask to be paid on a 1099, so that I can establish my own plan? Ask Employer to make a retirement account for me, although through my initial talks he seemed hesitant before. For now I can essentially only contribute to the backdoor roth, but that is only 5500 per year. I want to contribute up to 50k per year.

     

     
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