Hi!
I 'retired' at the beginning of this year (mid 30s) but my husband is still working a six figure job. We are what I'd consider FI-lite and he plans on continuing to work for several more years because he and I have differing desired spending levels in retirement. He maxes out his 401k as well as does some back door Roth conversions and contributes maximally to a personal Roth IRA. We also make monthly contributions to a taxable investment account, max out an HSA that we don't use for current health care costs, have an investment property, and contribute to 529s for our children.
I have been doing a small amount of side hustling under a LLC I made earlier in the year. I've made about 10k but I don't plan on trying to grow the business at all and expect to make 10-20k a year with it (kids, volunteering, and fitness goals are my priorities).
It's getting to the end of the year and I really need to decide what to do with the money sitting in my business account. In April I talked with our tax professional and she got me kind of mixed up about it and I'm looking for some guidance. I want to dump as close to 100% of the profits of my LLC as I can into a tax advantaged account. I'd prefer a Roth style account (we are fairly heavily weighted in pre tax accounts currently) but a pre tax account is fine if Roth isn't as viable. My tax lady was really promoting SEP IRAs but from what I understand of what I read I can't put anywhere close to 100% of the profits in there. Am I missing something?
My first inclination had been to set up a solo Roth 401k with vanguard. I've heard mention that they are more legally complicated but I am not sure what that entails.
Can anyone share experience with either of these two options, or another option that I am maybe overlooking? What are the administration challenges, tax implications, etc with these for both me as an individual as well as the LLC?