setting up retirement

[mdfamily]

I know a lot of discussion and thread were written about this, but wondering if I can get some pointers before I dig into the huge amount of posts.

 

I am an independent contractor Emergency physician working out of an LLC. I am working on making it a C corp.

I used to put money in retirement as an employee but starting January of this year I only do independent contracting work.

 

I make about 500k a year from clinical work and some change from real estate

 

What would be the best way for me to put money in retirement?

 

Thanks

[jfoxcpacfp]

Before you set up the C corporation, and presuming you intend to leave it as such, I recommend you seriously question the purpose and the advantages and disadvantages of doing so. It is not something I have ever recommended, although it doesn't mean it would not be appropriate for your specific situation. As for "working on making it a C corp.", it takes about 10 minutes with your Secretary of State, should not be necessary to complicate it with paying an extra attorney's fee as long as you have no partners and other complicating factors. You'll need to be sure to file all appropriate state and local reporting paperwork. This post may help:

How to set up your new business

I'd recommend you start with a solo-401k and, depending upon your age and career trajectory, consider adding a defined benefit plan (DBP). You'll want to roll any retirement money from your former employer into your solo-k, as allowed (some 457b's do not qualify), so that you will qualify to make annual backdoor Roth IRA conversions, tax free.

[mdfamily]

I meant S corporation, sorry for the confusion

[jfoxcpacfp]

mdfamily wrote:

I meant S corporation, sorry for the confusion

Click to expand...

Whew! :mrgreen:

[mdfamily]

))

[litovskyassetmanagement]

mdfamily wrote:

I know a lot of discussion and thread were written about this, but wondering if I can get some pointers before I dig into the huge amount of posts.

 

I am an independent contractor Emergency physician working out of an LLC. I am working on making it a C corp.

I used to put money in retirement as an employee but starting January of this year I only do independent contracting work.

 

I make about 500k a year from clinical work and some change from real estate

 

What would be the best way for me to put money in retirement?

 

Thanks

Click to expand...

Depending on how old you are, you might be able to do a 401k and Cash Balance plans together.  This is usually a good idea when you are at least 40 years old (ideally you might want to be closer to 50 for maximum benefit), however, some docs want to retire early so for them opening a Cash Balance plan might be a good idea earlier.  You will want to have a stable income for at least 3-4 years for the CB plan to be a viable option though.