Hey everyone, hoping for a little advice.
For 2016, I plan on making 300k for W2 employment and 40k for Independent contractor (unrelated employer).
Now, I'm trying to tax shelter as much of that $40k as possible. At my W2, I already max out my 401k employee contribution.
Questions:
1) So If I use a SEP IRA, would I be able to put all of that $40k into a tax sheltered account??? In the process, I understand I lose the ability to do Roth IRA.
2) If I did the solo 401k instead of a SEP IRA, how much would I be able to contribute? I understand that I have already given my maxed out emploYEE contribution at my W2 job. How much would I be able to give to my Solo401k as an employer??
3) Given this scenario, would SEP IRA > Solo 401k? I also have a Roth Option available at work if that makes the scenario any different.
Thank you all so much for your help.
For 2016, I plan on making 300k for W2 employment and 40k for Independent contractor (unrelated employer).
Now, I'm trying to tax shelter as much of that $40k as possible. At my W2, I already max out my 401k employee contribution.
Questions:
1) So If I use a SEP IRA, would I be able to put all of that $40k into a tax sheltered account??? In the process, I understand I lose the ability to do Roth IRA.
2) If I did the solo 401k instead of a SEP IRA, how much would I be able to contribute? I understand that I have already given my maxed out emploYEE contribution at my W2 job. How much would I be able to give to my Solo401k as an employer??
3) Given this scenario, would SEP IRA > Solo 401k? I also have a Roth Option available at work if that makes the scenario any different.
Thank you all so much for your help.
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