Individual 401k

[jsr52]

Currently a fellow. I currently have a 403B at work, (ROTH option), I plan to contribute 18,000 for the 2017 tax season. With excess moonlighting money that I make which is on a W-2, would it make more sense to backdoor roth it or open an individual 401k.

[jfoxcpacfp]

jsr52 wrote:

Currently a fellow. I currently have a 403B at work, (ROTH option), I plan to contribute 18,000 for the 2017 tax season. With excess moonlighting money that I make which is on a W-2, would it make more sense to backdoor roth it or open an individual 401k.

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You cannot use W2 income as the basis for opening a SOLO-k unless you own the business (and are both employee and employer). As a fellow and unless you are earning a lot moonlighting, you should be able to make a straight Roth contribution and avoid having to make the backdoor conversion. See the phaseouts on this chart; as long as your AGI is < $118k, no need for a backdoor Roth.