sbaker50ParticipantStatus: PhysicianPosts: 1Joined: 01/11/2019
I have about $10,000 worth of money from doing consulting work last year and was wanted to maximize the retirement potential of this new side gig. Have a plethora of questions that I felt the group could help me out with, thanks much in advance!!
I already have an ORP (Optional retirement plan), 403b, and 457 through my primary job and contribute to a Backdoor Roth account as well
Can I contribute to either an Individual or Solo 401k with this extra side gig money? Don’t have an LLC for the side hustle.
If I can contribute how much would be my max?January 11, 2019 at 8:47 am MST #180410PedsParticipantStatus: PhysicianPosts: 3002Joined: 01/08/2016
1- yes. they are the same. however youll have to learn which portion and how much. hint: tons of threads on this here.
2- dont know, you didnt give us enough info. start here: https://docs.zoho.com/sheet/published.do?rid=hd3vb2c79aa2e630443d58a05e8140934898aJanuary 11, 2019 at 9:13 am MST #180463jhwkr542ParticipantStatus: PhysicianPosts: 939Joined: 02/15/2016
You can, but with your 403b, assuming you’re maxing your employEE contributions, you’ll only be able to do profit sharing contributions, which would amount to 20% of (earnings less 1/2 SE tax), so you’d be saving a few hundred bucks in taxes for the hassle. It might be worth it to you, especially if you need to rollover an IRA now or in the future. Also, is this an ongoing gig or just last year? If this were just a one year thing, I probably wouldn’t mess with it.January 11, 2019 at 10:09 am MST #180489jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 1691Joined: 03/01/2018
to contribute to a solo 401k for 2018 the plan had to have been opened by 12/31/18
you can open a SEP IRA for 2018 contributions, deadline is your tax filing deadline including extensions
you can then open a solo 401k for 2019 and future contributions and rollover the SEP IRA to the solo 401k
note: don’t open the solo 401k at Vanguard because their plan won’t accept a rollover
you don’t need an LLC, it has no benefit but may have added costs
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA