Thanks for all the wonderful information on the forum and the book.
I have a question in regards to the traditional IRA conversion to Roth. I work for both employer & 1099
Some basics. I work for as an employee (W-2) for an ER group in Miami, FL and also participate in some 1099 locums assignments. I have a LLC for my locums, which I am the only agent on the company. I am single. I max out my employee 401K. I rolled over all my previous employer’s 401k to my existing 401k. I have NO IRA at this time. I am 39, and way behind on retirement….Hence the help from this forum will help me not depend on social security. I have been allocating my 1099 income to help pay down the high interest student loans and the remaining I want to contribute to retirement. Cars are paid off…but I did splurge on a boat (shame on me!). I do have some equity and debt in my real-estate.
Numbers:
Salary (w-2): $340k/year
1099: ~$60K/year
Pension: ~$20K
401k: $134k, with max annual contribution
HSA: $17k; maxed out as with a domestic partner.
Student loans: $141k ($96k at ~2.7%, $33k at 5% & $10k at 4%)
Boat: $72k at 4.2%
IRA/Roth: nada!
Questions:
I have a question in regards to the traditional IRA conversion to Roth. I work for both employer & 1099
Some basics. I work for as an employee (W-2) for an ER group in Miami, FL and also participate in some 1099 locums assignments. I have a LLC for my locums, which I am the only agent on the company. I am single. I max out my employee 401K. I rolled over all my previous employer’s 401k to my existing 401k. I have NO IRA at this time. I am 39, and way behind on retirement….Hence the help from this forum will help me not depend on social security. I have been allocating my 1099 income to help pay down the high interest student loans and the remaining I want to contribute to retirement. Cars are paid off…but I did splurge on a boat (shame on me!). I do have some equity and debt in my real-estate.
Numbers:
Salary (w-2): $340k/year
1099: ~$60K/year
Pension: ~$20K
401k: $134k, with max annual contribution
HSA: $17k; maxed out as with a domestic partner.
Student loans: $141k ($96k at ~2.7%, $33k at 5% & $10k at 4%)
Boat: $72k at 4.2%
IRA/Roth: nada!
Questions:
- How do I contribute to my traditional IRA: Can the LLC contribute (from its earnings) the $5,500 or do I personally contribute from my income? I ask, because if the LLC contributes, it can be a deduction to the LLC’s profits and not a draw to me. Or do I have to contribute personally and claim the $5500 as 1099-income.
- I have an extra $10k from an old non-interest bearing savings account, should I contribute (open a Vanguard brokerage account) to post-tax investment account or pay down some debt. PS I hate debt, but also love that dam boat.
- Can my LLC contribute higher amount or in addition to the $5500 of the traditional IRA using a SEP or solo- 401k? PS: my employer (W-2) does not allow additional contributions.
- Any other suggestions…..Thank you!!!
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