So thanks to Johanna Fox Turner's guides (I think they are very beneficial... here is the link...am I allowed to post this again, it is also in her thread she create? http://foxwealthmgmt.com/for-doctors-only#/doctor-resources and it's posted in this thread: https://www.whitecoatinvestor.com/forums/topic/new-financial-guides-published/ ) I have been more exposed to the solo 401. However, I have questions, and I'm not clear looking at the IRS website either:
My wife has 2 more years of getting a 1099-Misc (sign-on bonus). She doesn't have the time to moonlight, so the 1099s will stop after 2017. Will we be able to contribute every year once it is open? Or are we only able to contribute the years she gets a 1099?
I see all these rules about max contributions, but what I can't determine is if its total income, or only income reported on the 1099. She has $20K a year over 4 years as a "forgivable loan". Because she started in the summer, we actually have 5yrs of 1099s, the first and 5th year reporting less than $20K because of the fractional year. If we were to open a 401(k) this year, would the max be $5,000 (25%) or would it be 18+ plus 25% up to $53K from all sources of income?
Lastly I see they can be Roth or traditional, but there are benefits (such as borrowing against). The guide mentions using it for backdoor. Why can't the money just go in and be claimed Roth dollars? Is there another strategy to use the solo 401(k) to get a multi benefit like HSAs (pre-tax in, tax free growth and deduction when used for medical reasons)?
Thank you
My wife has 2 more years of getting a 1099-Misc (sign-on bonus). She doesn't have the time to moonlight, so the 1099s will stop after 2017. Will we be able to contribute every year once it is open? Or are we only able to contribute the years she gets a 1099?
I see all these rules about max contributions, but what I can't determine is if its total income, or only income reported on the 1099. She has $20K a year over 4 years as a "forgivable loan". Because she started in the summer, we actually have 5yrs of 1099s, the first and 5th year reporting less than $20K because of the fractional year. If we were to open a 401(k) this year, would the max be $5,000 (25%) or would it be 18+ plus 25% up to $53K from all sources of income?
Lastly I see they can be Roth or traditional, but there are benefits (such as borrowing against). The guide mentions using it for backdoor. Why can't the money just go in and be claimed Roth dollars? Is there another strategy to use the solo 401(k) to get a multi benefit like HSAs (pre-tax in, tax free growth and deduction when used for medical reasons)?
Thank you
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