Hello,
Back story: Out of residency 2.5 years. Was a 1099, but hospital did not renew third party contract and became employee. I'm a young married guy with no health problems (knock on wood), and no kids. I took a big pay decrease going from RVU 1099 to W2 (160k yr loss)....Company state they make it up in benefits. Essentially I gave up the Cadillac health plan and retirement benefits. At my company you have to be 3 yrs vested, but due to family circumstances we can only live in current state for another yr so vesting benefits did not matter to me. So my new w2 contractor status pays me more hourly, but without the retirement and insurance benefits. I'm able to get on wife's health plan. New w2 contractor status also pays for 1/2 FICA/Medicare and Social Security. Crunched the numbers and it boosted my rate $43 more an hour. Spoke to boss and was able to switch from employee based w2 to a "W2 Contractor".
My biggest issue thus far is how to do my own retirement funds. I will still receive a W2 at end of yr, but cannot contribute to company plan. I cant do Roth due to phase out. Besides backdoor IRA what can I use to safe haven tax deferred retirement money? I used to have a Vanguard SEP when I was 1099. Any suggestions?
Txs,
Eddie
Back story: Out of residency 2.5 years. Was a 1099, but hospital did not renew third party contract and became employee. I'm a young married guy with no health problems (knock on wood), and no kids. I took a big pay decrease going from RVU 1099 to W2 (160k yr loss)....Company state they make it up in benefits. Essentially I gave up the Cadillac health plan and retirement benefits. At my company you have to be 3 yrs vested, but due to family circumstances we can only live in current state for another yr so vesting benefits did not matter to me. So my new w2 contractor status pays me more hourly, but without the retirement and insurance benefits. I'm able to get on wife's health plan. New w2 contractor status also pays for 1/2 FICA/Medicare and Social Security. Crunched the numbers and it boosted my rate $43 more an hour. Spoke to boss and was able to switch from employee based w2 to a "W2 Contractor".
My biggest issue thus far is how to do my own retirement funds. I will still receive a W2 at end of yr, but cannot contribute to company plan. I cant do Roth due to phase out. Besides backdoor IRA what can I use to safe haven tax deferred retirement money? I used to have a Vanguard SEP when I was 1099. Any suggestions?
Txs,
Eddie
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