I'm helping a family member get her financial house in order. Her new job only offers a profit sharing SEP IRA and no 401k. Contributions vary yearly based on how well the company does. Her income will be too high to contribute to a Roth IRA. She's fresh out of school and has ~$300k student debt refinanced to 3.5%. I helped her get a Roth IRA started last year. She obviously needs to prioritize her student loans, but I was trying to think of how to get her more tax protected space. Income this year will be ~$300k. Age 30. Right now she's got ~$10k in SEP IRA and $5k in Roth IRA. She's got an unrelated side hustle that makes about $10k. I posted to bogleheads and got some ideas, and wanted to see if there are any thoughts from this community.
She's wanting to pay off student loans ASAP, but eventually will want to invest with more tax protected space. My plan was to suggest she open a solo 401k at fidelity with side hustle (schedule F income) and do a yearly transfer of the SEP IRA into the solo 401k which will open up backdoor Roth IRA option. Also, an HSA would be a good idea if she has a HDHP.
She's wanting to pay off student loans ASAP, but eventually will want to invest with more tax protected space. My plan was to suggest she open a solo 401k at fidelity with side hustle (schedule F income) and do a yearly transfer of the SEP IRA into the solo 401k which will open up backdoor Roth IRA option. Also, an HSA would be a good idea if she has a HDHP.
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