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Research into solo 401k with intent for mega backdoor roth

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  • Avatar ChicSkiier 
    Participant
    Status: Physician
    Posts: 14
    Joined: 06/24/2019

    My 1099 income is only about $5k. From the MMM thread, discount solo 401k is about $575 the first year and $100 each subsequent year you do the mega backdoor roth. At the moment I am thinking it would be cost effective, since even though $3000 is a paltry sum that would otherwise go in a taxable account, the capital gains tax I would pay several decades from now would exceed it. And currently, my future plans are to transition to part time locums work when this would be more a more useful strategy, but that would still justify the upfront $575 cost. I’ll wait till the end of the year before I decide how to play this. I’ve never even opened a solo 401k before, so this would be an interesting adventure.

    Click to expand…

    you can use TFB calculator to see the value

    https://docs.zoho.com/sheet/published.do?rid=b6wwv1d611964d92c49f491b3b7f9cc578207

    https://thefinancebuff.com/after-tax-contributions-in-solo-401k.html

     

    As mentioned the cost is deductible for business expense.

    Click to expand…

    Amazing excel sheet and helpful website.  Thanks saildawg

     

    #238492 Reply
    Liked by saildawg

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