I have the potential of becoming a contractor for my current employer trading my W2 for a 1099. I'm considering doing this in 2025 due to the following:
My spouse carries health insurance which my employer does not offer. He wants to retire which means we'll have to purchase insurance via the ACA. By me being a contractor, we'll be able to deduct our health insurance premiums. Related question -- is there a strategy for what sort of plan we should choose on the Marketplace? Namely, should we consider higher premium plans with lower deductibles since we can deduct the premiums but not the out-of-pocket expenses? This might eliminate HDP with HSA which we currently have through his employer and has worked well for us.
My IRA with Vanguard currently has non-deductible contributions which means we file an 8606 form each year as we do Roth conversions in hopes of "cleaning" it up. It feels like we'll never get there since it keeps growing (a good problem to have). By opening a Solo 401k as a contract worker that would allow me to transfer the tax-deferred portion of my IRA to the Solo 401k and get that mix of sources cleaned up. Am I thinking about this properly and is Vanguard's Solo 401k a good option?
My spouse carries health insurance which my employer does not offer. He wants to retire which means we'll have to purchase insurance via the ACA. By me being a contractor, we'll be able to deduct our health insurance premiums. Related question -- is there a strategy for what sort of plan we should choose on the Marketplace? Namely, should we consider higher premium plans with lower deductibles since we can deduct the premiums but not the out-of-pocket expenses? This might eliminate HDP with HSA which we currently have through his employer and has worked well for us.
My IRA with Vanguard currently has non-deductible contributions which means we file an 8606 form each year as we do Roth conversions in hopes of "cleaning" it up. It feels like we'll never get there since it keeps growing (a good problem to have). By opening a Solo 401k as a contract worker that would allow me to transfer the tax-deferred portion of my IRA to the Solo 401k and get that mix of sources cleaned up. Am I thinking about this properly and is Vanguard's Solo 401k a good option?
Statistics: Posted by jeffreys — Mon Jul 08, 2024 9:57 am — Replies 0 — Views 1