Hi all, I just discovered WCI and so far have gotten a ton of useful info. Since reading the book and website, I've wanted to redo some of my accounts to maximize retirement accounts and minimize my tax bill to Uncle Sam.
I graduated from fellowship about 3 years ago, and have been trying to save at least 100k yearly. During fellowship, I opened Roths for myself and my wife and have around 30 in mine and 5 in my wives (unfortunately only started hers later, big mistake retrospectively). Now have around 250k saved, most of it in a taxable account in various mutual funds since I wasn't on top of things last year, and didn't contribute the max to my prior 403b.
I have since switched jobs and am going through my finances to help with retirement planning. Aim is for FI by 52-55. Now make the bulk of my salary on a W2. I rolled over my old 403b to my current 401K, much lower fees. I now contribute the max, 18K to my employer 401K plan and get a partial match of around 10K (and unfortunately does not allow further contributions to the 53K max). I also have a side gig moonlighting and make around 120K/yr paid on a 1099. We only owe 100k on our house, 3.75% rate which I hope to be paid off in the next 2 years.
I spoke with my accountant today asking about backdoor Roths, and other possible accounts solo 401K, SEP etc. He said that I can only make contributions from the 1099 income, and recommends a SEP for both myself and wife which can allow us to put another 24 into retirement accounts. But that I can't contribute to a solo 401K from my W2 income due to my employer sponsored 401K. Does that make any sense? I was hoping to do both, open a SEP with my schedule C income and then do a backdoor Roth back into our Roth accounts.
I'm also going to open 2 529s for my kids, which is long overdue.
Appreciate any advice! Thanks so much!
I graduated from fellowship about 3 years ago, and have been trying to save at least 100k yearly. During fellowship, I opened Roths for myself and my wife and have around 30 in mine and 5 in my wives (unfortunately only started hers later, big mistake retrospectively). Now have around 250k saved, most of it in a taxable account in various mutual funds since I wasn't on top of things last year, and didn't contribute the max to my prior 403b.
I have since switched jobs and am going through my finances to help with retirement planning. Aim is for FI by 52-55. Now make the bulk of my salary on a W2. I rolled over my old 403b to my current 401K, much lower fees. I now contribute the max, 18K to my employer 401K plan and get a partial match of around 10K (and unfortunately does not allow further contributions to the 53K max). I also have a side gig moonlighting and make around 120K/yr paid on a 1099. We only owe 100k on our house, 3.75% rate which I hope to be paid off in the next 2 years.
I spoke with my accountant today asking about backdoor Roths, and other possible accounts solo 401K, SEP etc. He said that I can only make contributions from the 1099 income, and recommends a SEP for both myself and wife which can allow us to put another 24 into retirement accounts. But that I can't contribute to a solo 401K from my W2 income due to my employer sponsored 401K. Does that make any sense? I was hoping to do both, open a SEP with my schedule C income and then do a backdoor Roth back into our Roth accounts.
I'm also going to open 2 529s for my kids, which is long overdue.
Appreciate any advice! Thanks so much!
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