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Open Solo 401(k) to be used in 29 years?

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  • Open Solo 401(k) to be used in 29 years?

    I moonlighted (paid on 1099) this year in addition to my current hospital employment. However, I don't plan on moonlighting in the future. My 403(b)/457 expense ratios available to me are all actively managed funds with expense ratios around 1%. I was thinking about starting an individual 401(k)  so I could roll my 403(b) into it when I leave my employer in 29 years (retire) and get much better expense ratios. Would it be smart and proactive to do this or does it seem way too premature if I don't plan to leave my employer for another 29 years? In general, is it pretty easy to start an individual 401(k) outside of medicine if I elect to not start a Individual 401(k) this year? All of my money right now is going toward my student loans at 4.3% (I'm only 1 year out of residency) other than a Backdoor Roth IRA this year.

  • #2
    There are too many assumptions to give a good answer, but the odds of a) you working for the same employer and b) the employer having the same crappy plan in 29 years are vanishingly small. I think our hospital is on their third custodian for the retirement plan over the last decade.

    When you leave your employer, you can simply roll the money over to an IRA or your next employer's (if there is one) 401(k).

    What would I do in your shoes? Lobby HR to get on board with a halfway decent plan.