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I am a dental specialist just finishing my first year of private practice (single, 30 years old). For dentists, it is highly unlikely for us to ever have a 401k offering from any work, being as though most people, especially in my specialty, work in small private practice settings vs large corps or hospitals. So from what I know, that limits us to basically IRAs, taxable accounts, and maybe solo-401ks until if and when we have our own practices with employees. I'd like this thread to be a conversation place for young dentists (general dentists and specialists) starting out.
My situation: I plan on making a full contribution to my Roth IRA this year but would like to invest another 5-10k for retirement after looking at my budget for other short term goals and handling student debt. I do not have a company 401k from my main job but I do have some 1099 income (maybe about 4-6k in profits this year, can be conservatively 20-30k next year). I have not yet formed a LLC but may in the future. I was thinking about opening a solo-401k and then a taxable account after to meet my goal for this year. Next year I will most likely not be able to contribute directly to the Roth IRA and may need space for conversions, so I didn't look too hard into SEP or SIMPLE IRAs. I'm not sure how long I'll keep the 1099 income up or if I'll buy in where I'm working or if I'll just have my own practice and start to have employees. I like where I work now and am gaining a lot of good experience, so I plan on making a decision in a year or two. What happens if I stop the 1099 income or start to have employees? Would I ever need to pay myself through a W2 if I start the solo-401k to show employer vs employee contributions? What happens if I decide to become a LLC for my 1099 work after opening the solo-401k? Should I wait on the solo-401k and just use a taxable account until I'm more certain? Any other thoughts? Thanks!
My situation: I plan on making a full contribution to my Roth IRA this year but would like to invest another 5-10k for retirement after looking at my budget for other short term goals and handling student debt. I do not have a company 401k from my main job but I do have some 1099 income (maybe about 4-6k in profits this year, can be conservatively 20-30k next year). I have not yet formed a LLC but may in the future. I was thinking about opening a solo-401k and then a taxable account after to meet my goal for this year. Next year I will most likely not be able to contribute directly to the Roth IRA and may need space for conversions, so I didn't look too hard into SEP or SIMPLE IRAs. I'm not sure how long I'll keep the 1099 income up or if I'll buy in where I'm working or if I'll just have my own practice and start to have employees. I like where I work now and am gaining a lot of good experience, so I plan on making a decision in a year or two. What happens if I stop the 1099 income or start to have employees? Would I ever need to pay myself through a W2 if I start the solo-401k to show employer vs employee contributions? What happens if I decide to become a LLC for my 1099 work after opening the solo-401k? Should I wait on the solo-401k and just use a taxable account until I'm more certain? Any other thoughts? Thanks!
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