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Late to the game and confused with my options

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  • Late to the game and confused with my options



    Just took a new position.  I am carrying forwards a six-figure 401k balance from my previous employer.

    My new employer splits my salary.  I'm a government employee, and the institution pays me as a university professor, about $50K of my total salary.  This is on a W-2. From this component of my salary, I have a defined contribution plan that requires a 3.5% contribution and then the institution contributes 8% of my gross salary into it.  This fund will be with Fidelity.

    The remainder of my salary is paid through a LLC to bring our salary up to a level commensurate for a physician.  I get a 1099 form for this. For this component, the LLC pays about $9000/yr into a SEP-IRA for us.

    I have the option to enroll in government 457b plan.

    This is what I would like to do:

    Enroll in the defined plan with Fidelity to get the match from my employer.

    Max out the 457b (which is $18k a year) using either Fidelity or Vanguard.

    I set up a SEP-IRA account with Vanguard.  Should I just keep everything with Fidelity?

    I wanted to open a solo 401k with Fidelity and use it to roll my previous employers account into, and then use it for any additional contributions I can make. Also, I want to have this open so that I can roll the SEP IRA money into so that I can do a backdoor Roth for me and my husband.

    Am I able to open a solo 401k if I have both W-2 and 1099 income?

    Is there anything wrong with my logic?



  • #2
    I'm confused about the LLC component re: the 1099 and the SEP-IRA. Something seems fishy - why aren't you paid as a W2 employee by the LLC?
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087