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  • CRNA Wife 1099

    Hello everyone,

    I am a W2 MD, and my wife is currently a W2 CRNA.  She is looking to cut back and I told her it may make sense for her to go PRN as a 1099.  That way she could be on my insurance plan but then setup a solo-401k and potentially contribute more than her current retirement limits of 18k +4% match.  Has anyone had experience doing this? Did it make sense financially?

    Thanks!

  • #2
    Have you calculated the value of any other benefits she gets as a W2?  Payroll taxes?

    Would also depend on how part time she is going to go in terms of the retirement contribution..

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    • #3
      This is a serious discussion to have with your CPA and/or fee-only CFP. It may make sense, but the professional can help you consider issues that may not arise in this discussion and calculate the effects of one decision over the other. In fact, a projection will help you determine the comprehensive effects of cutting back to various levels.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        I agree with Ms. Turner that there are a ton of variables to consider, but I will add that setting up a solo-401(k) through TD Ameritrade is extremely easy and there are no fees, at least to my knowledge.  I have assisted a few people with that process and have been pleased with their customer service and responsiveness.

        Also, consider how much she can charge PRN compared to her current salaried rate. All other things being equal, her hourly pay should go up significantly as a PRN because she has to cover her own benefits, taxes, etc., and because she can plug in high-need situations. If the hourly compensation is similar, then it going PRN needs to be considered an hourly pay cut in the overall comparison of income, work-life balance, etc.

        -Richard

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        • #5
          Thanks for the replies everyone.  We are just in the beginnings of discussing it as a possibility, so will definitely need to run the numbers before making a decision.  It would definitely be a lifestyle change first most and then secondarily looking for financial silver linings.

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