Hey all, new to this forum but not new to WCI. Been a follower and a believer (tell you in 30 years) for 4-5 years now. I have some questions about what to do next.
Brief numbers: residency income ~55k (W2), moonlighting income ~60k (1099). Max out 457 and both my wife and I's Roth IRAs--all in Vanguard target fund right now. Education debt: 40k @ 6.6%. Total retirement accounts ~100k. Emergency plan is funded.
So...
As an aside, I know that WCI recommends paying off the 6.6% rate educational debt first but I have my reasons to slowly pay my loans right now. I will pay them off within 18-24 months (awaiting windfall).
For the last tax year, I was going to open a solo 401k but didn't realize there was a Dec 31 deadline so I opened and contributed 4k into a SEP-IRA at vanguard.
For this tax year, I had some considerations I was hoping I could get some guidance on:
1. I am thinking to open a roth solo 401k and max it out. This way I get roth contributions and still get a pretax break from the 'employer' contribution. Other option is to just do a regular solo 401k and decrease my taxes now. Which option would you recommend?
2. What are my options for my sep-ira from last year? I would rather consolidate it into fewer accounts rather than have a bunch of accounts. I was told I can roll it over to my Roth IRA or Roth 401k (@ e-trade, not vanguard) but would have to pay taxes on it. What would you recommend?
Thank you so much.
IradRocks
Brief numbers: residency income ~55k (W2), moonlighting income ~60k (1099). Max out 457 and both my wife and I's Roth IRAs--all in Vanguard target fund right now. Education debt: 40k @ 6.6%. Total retirement accounts ~100k. Emergency plan is funded.
So...
As an aside, I know that WCI recommends paying off the 6.6% rate educational debt first but I have my reasons to slowly pay my loans right now. I will pay them off within 18-24 months (awaiting windfall).
For the last tax year, I was going to open a solo 401k but didn't realize there was a Dec 31 deadline so I opened and contributed 4k into a SEP-IRA at vanguard.
For this tax year, I had some considerations I was hoping I could get some guidance on:
1. I am thinking to open a roth solo 401k and max it out. This way I get roth contributions and still get a pretax break from the 'employer' contribution. Other option is to just do a regular solo 401k and decrease my taxes now. Which option would you recommend?
2. What are my options for my sep-ira from last year? I would rather consolidate it into fewer accounts rather than have a bunch of accounts. I was told I can roll it over to my Roth IRA or Roth 401k (@ e-trade, not vanguard) but would have to pay taxes on it. What would you recommend?
Thank you so much.
IradRocks
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