I recently accepted an IC position for next year post-graduation. I am to be paid a signing bonus in a staggered fashion with about 8k to be distributed to me before the end of this year. Since I don't really have an immediate need for this money, I am wondering how best to tax shelter it. My wife and I file MFS to keep her IBR loan payments low and last year was the first year we made contributions to out Roth-IRAs through the back door. We intend to make our second contribution soon.
I was thinking of just opening either a SEP-IRA or a solo-401k before the year is out and dumping the bonus into that. It seems like I could contribute more of the bonus into a solo-401k than a SEP. In addition, the solo-401k would preserve the backdoor Roth option for us.
I am also seeking guidance on which firm to use. We have used Vanguard for our Roths but, after doing some reading it seems that they do not allow one to purchase admiral shares in their solo-401k. I have a hospital sponsored 403b with Fidelity already. I was thinking that for this reason I'd open the solo-401k with them so that I can easily roll the 403b into it upon graduation. I have ready that Fidelity allows you to buy Vanguard admiral shares for their 401k.
Any guidance is very much appreciated!
I was thinking of just opening either a SEP-IRA or a solo-401k before the year is out and dumping the bonus into that. It seems like I could contribute more of the bonus into a solo-401k than a SEP. In addition, the solo-401k would preserve the backdoor Roth option for us.
I am also seeking guidance on which firm to use. We have used Vanguard for our Roths but, after doing some reading it seems that they do not allow one to purchase admiral shares in their solo-401k. I have a hospital sponsored 403b with Fidelity already. I was thinking that for this reason I'd open the solo-401k with them so that I can easily roll the 403b into it upon graduation. I have ready that Fidelity allows you to buy Vanguard admiral shares for their 401k.
Any guidance is very much appreciated!
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