John22ParticipantStatus: PhysicianPosts: 1Joined: 08/10/2019
I’m an associate at a small private practice and w2 employee two years out of residency. i recently paid off my student loans (180k)! Additional funds go to a back door Roth IRA, brokerage account, HSA, 529, and a high-yield savings account. I am relatively happy with the practice.
Unfortunately there is no retirement plan for the practice. I am considering requesting to change from a w2 to a 1099 contractor for year 3 (new contract), primarily to set up a solo-401k, as well as take advantage of the 2018 tax law changes. My initial contract was a salary; new contract will have a lower base salary but include production bonuses (ultimately increasing total compensation). My hours and time off are more flexible due to the salary changes (eg I can take off more time as long as i cover base salary).
1. is changing from w2 to 1099 reasonable/allowable by the IRS while at the same office?
2. besides requesting an increase in compensation to cover employer portion of FICA, is there anything else I should request?
Thanks in advance!September 6, 2019 at 12:39 pm MST #244287ChesskntParticipantStatus: Resident, PhysicianPosts: 13Joined: 04/16/2018
Very strict rules for 1099 and unless the language in your contract significantly changes (eg they have significantly less oversight of you, your scheduele/hours etc) this would probably be seen as a red flag by the irs.September 6, 2019 at 12:58 pm MST #244297