I have become a sole proprietor in 2013. Hourly consultant, 1099, am not incorporating.
1. I assume that the ongoing backdoor Roth contribution strategy will still be possible, even with a large pre-tax balance in my new I401(K). The reason I ask is because I intend to convert my corporate 401(K) balance into my new Schwab I401(K) because of the better investment choices with Schwab. I want to make sure that I have no reason to regret moving it out of the corporate 401(K) account, and closing off the post-tax traditional IRA contribution with immediate rollover to Roth IRA would certainly be undesirable.
2. How do I physically make my $17,500 in employee deferral contributions? My customer just pays me via check once a month in the gross amount of my invoice. So, I get no payroll check where a normal employee deferral contribution would be withheld.
3. I assume I should wait until March or so when I file my 1040 to make the employer contribution of up to $33,500.
4. With few business expenses, maybe $2500, and assuming ~$10,000 one-half self employment tax, I assume I need to bring in ~$180,000 in gross revenues to make a maximum $33,500 employer contribution (20% of $167,500).