Hello, wanted to ask some of the more seasoned folks their thoughts on whether I should got SEP or 401k.
About me: 40 yr old physician PM&R inpatient, wife is currently stay at home mom, 2 babies less than 2 years old. I am generally frugal, and have been fastidious about savings and retirement accounts. My total net is north of 1 million, cars payed off, currently renting low cost house (2400/mo). Student loans for wife and I combined < 100K.
Goal is retire by 62 if possible from full time inpatient work when my girls finish college. But I can see myself just rounding on 7-10 patients a few days a week after 62 for many years if its a good situation.
Pretty much most of my attending career (>10 years) was employed and mid 2015 moved, started own PLLC to be an independent contractor at local rehab hospital. Last year since I worked about half the year as an employed MD I contributed about half the total (8500 or so) to employer sponsored retirement. Due to cash flow issues as a new practice I did not contribute anything at all for 2015 towards a self employed retirement account.
Around December of 2015, the collections started rolling on, and my net earnings for 2015 in my PLLC is about $73K.
So I called Vanguard last week and was told that I could not open a self employed 401k for 2015 but I could do a SEP. My understanding is if I do a SEP I can do 25% of my 2015 earnings which would equate to 13K or so for 2015.
I also understand a SEP is much easier to maintain and I have good options for investment if I go with Vanguard which is my preferred brokerage (Fidelity being my second brokerage).
So, wanted to ask the forum if I should just do a SEP so I can have continuity for my new account or do a SEP for 2015 and 401K for 2016 onwards.
Or should I consider other options?
About me: 40 yr old physician PM&R inpatient, wife is currently stay at home mom, 2 babies less than 2 years old. I am generally frugal, and have been fastidious about savings and retirement accounts. My total net is north of 1 million, cars payed off, currently renting low cost house (2400/mo). Student loans for wife and I combined < 100K.
Goal is retire by 62 if possible from full time inpatient work when my girls finish college. But I can see myself just rounding on 7-10 patients a few days a week after 62 for many years if its a good situation.
Pretty much most of my attending career (>10 years) was employed and mid 2015 moved, started own PLLC to be an independent contractor at local rehab hospital. Last year since I worked about half the year as an employed MD I contributed about half the total (8500 or so) to employer sponsored retirement. Due to cash flow issues as a new practice I did not contribute anything at all for 2015 towards a self employed retirement account.
Around December of 2015, the collections started rolling on, and my net earnings for 2015 in my PLLC is about $73K.
So I called Vanguard last week and was told that I could not open a self employed 401k for 2015 but I could do a SEP. My understanding is if I do a SEP I can do 25% of my 2015 earnings which would equate to 13K or so for 2015.
I also understand a SEP is much easier to maintain and I have good options for investment if I go with Vanguard which is my preferred brokerage (Fidelity being my second brokerage).
So, wanted to ask the forum if I should just do a SEP so I can have continuity for my new account or do a SEP for 2015 and 401K for 2016 onwards.
Or should I consider other options?
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