How to maximize retirement with the one regular job and one locum tenens job?

Discussion in 'Finance and Investment' started by doctorpilgrim, Aug 7, 2017.

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  1. doctorpilgrim

    doctorpilgrim 2+ Year Member

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    Apr 10, 2014
    I was late to start investing in retirement and now in my forties.
    I now work two jobs, one is a salaried position where I maximize my retirement investment as it has a 403B plan along with 457 plan and so I invest the maximum of 53k in retirement plan at the salaried job.

    Now I do 1099 job at another place. What are the best ways to add another retirement investment option.
    I shall be grateful for guidance.


    Sent from my iPhone using SDN mobile
     
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  3. SigmaFS

    SigmaFS Probationary Status 2+ Year Member

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  4. beestrng

    beestrng 5+ Year Member

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    What about SEP?
     
  5. SigmaFS

    SigmaFS Probationary Status 2+ Year Member

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    SEP contributions are the lesser of 20% of 1099 net profit or $54k. Individual 401k contribution is up to $18k as employee (and can be Roth) and 20% of net profit from 1099. Easier to increase contributions in an Individual 401k and can contribute to a Roth.
     
  6. PistolPete

    PistolPete 10+ Year Member

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    You can open up a solo 401k through your 1099 work and add EMPLOYER (not employee) contributions so that you can put away even more than 53k per year. You can search for this on WhiteCoatInvestor.com, which I highly recommend.
     
  7. Another Second Opinion

    Another Second Opinion

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    If you've maxed out your 401k contributions on the W2 side, the 1099 investments should go into a SEP. From the SEP, you always have an option of rolling that into something else down the road.
     
  8. dpmd

    dpmd Relaxing 10+ Year Member

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    You can't double dip employee contributions for the W2 job and the 1099 job.
     
  9. beestrng

    beestrng 5+ Year Member

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    So if I max out my contribution to the 401k I can still put in 25% of my PRN money into a SEP?

    PRN is 1099 money.
     
  10. Another Second Opinion

    Another Second Opinion

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    Aug 5, 2017
    Indeed. Even though you've maxed out your 401k, the SEP is still an option with 1099 income. There are limits on how much you can put into the SEP, but if it's just "prn money," I doubt you'll reach the limits.
     
    Last edited: Aug 18, 2017 at 6:46 PM
  11. ThoracicGuy

    ThoracicGuy 2+ Year Member

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    With a SEP, that could limit your ability to do a backdoor Roth IRA contribution. I would stick with the solo 401k.
     
  12. Another Second Opinion

    Another Second Opinion

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    Aug 5, 2017

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