I joined the corporate workforce in 2014 at the age of 33. Previously, my small business income was worth about 50k a year, with roughly half being W2 employee earnings and the other being 1099 Sec C income as a sole proprietor. Now, I'm at about 75k and the side job is closer to 6k net after deductions. I'm able to max out the personal contributions on the employment front.
I have about 130k in fairly liquid investments and cash plus 20k or so in the 401k and another 20k in the Roth IRA. Aside from the 401k and IRA contributions, I'm able to save around 30k per year. Largely, I pay too much in rent, but hope to purchase an inexpensive home this year to fix this.
Could/should I leverage my small business income as additional 401k contributions? The internet offers plenty of how-to for individuals who are fully set up as small businesses, but what about for a side income stream? I may be able to further increase my side income if I can realize some savings benefit to doing so. Right now the tax liability makes it less of a priority.
Furthermore, my company has a fairly restrictive 401k contribution level for those who are "highly compensated" individuals (over 125k.) It'll take quite a few years to get there, but I may want to keep this in mind as a strategy to avoid restricted contributions in this case. Any input on this scenairo?