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Ensuring max contributions

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  • Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 143
    Joined: 01/01/2019

    I have 3-401k/b, 1-Simple IRA and a SEP that are active. With the exception of the Simple where I can give a specific dollar amount the others are a % of my income which makes it difficult to ensure I’m putting in the max without going over. I’m >50yo so want to make maximum contributions. I’m guessing I need to calculate how much was deducted from the 401 k/bs and add the difference in a 1x payment into the Simple at the end of the year. Any thoughts?

    #207359 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4452
    Joined: 01/08/2016

    You have 3 401ks you are actively contributing to?

    #207366 Reply
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 562
    Joined: 06/14/2016

    Don’t you simply fund the SEP after the year is over before tax day? Do you fully know what your expenses, income, and profit are?

    #207383 Reply
    Liked by StateOfMyHead
    Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 143
    Joined: 01/01/2019
    Splash Refinancing Bonus

    Yes I work 3 part-time/relief jobs that all offer and contribute.

    And yes for my SEP of course I know my expenses etc I muddied the waters by adding that, sorry.

    #207415 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8141
    Joined: 01/09/2016

    Do they all have a match? I’d skip any w/o a match and just use the matched plans but, yes, you’ll need to true up in December. Is there a reason you have a SEP instead of a solo-k? No use for backdoor Roth?

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #207422 Reply
    Liked by spiritrider
    Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 143
    Joined: 01/01/2019

    Do they all have a match? I’d skip any w/o a match and just use the matched plans but, yes, you’ll need to true up in December. Is there a reason you have a SEP instead of a solo-k? No use for backdoor Roth?

    Click to expand…

    They do all have a match and have decent fund options. I’m not sure why a SEP, it is what I’ve had for years. I will have to look into solo-k. Since I’m only 10 years from retirement and making a decent income I figured the backdoor Roth might actually be detrimental because I’ll be paying a higher rate on it now? Definitely open to suggestions. Thank you Johanna!

    #207445 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8141
    Joined: 01/09/2016

    Do they all have a match? I’d skip any w/o a match and just use the matched plans but, yes, you’ll need to true up in December. Is there a reason you have a SEP instead of a solo-k? No use for backdoor Roth?

    Click to expand…

    They do all have a match and have decent fund options. I’m not sure why a SEP, it is what I’ve had for years. I will have to look into solo-k. Since I’m only 10 years from retirement and making a decent income I figured the backdoor Roth might actually be detrimental because I’ll be paying a higher rate on it now? Definitely open to suggestions. Thank you Johanna!

    Click to expand…

    Re: the backdoor Roth – you are not giving up pre-tax space. You are choosing between investing and paying tax on all growth and income versus investing and paying zero tax on all growth and income. No brainer.

    Don’t choose Vanguard for your solo-k, it’s the worst option. TDA or E*TRADE have better arrangements. I wrote this blog post to help people in your situation get started.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #207448 Reply

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