For context, I'm working a generally comfortable permanent/staff position with excellent benefits, 5 weeks PTO, but a relatively stagnant salary/title since I was hired just over five years ago. We had a major reorganization this year which was supposed to be HR's opportunity to correct that, but turns out they didn't - I got a lateral title and a normal COL increase. I expressed my displeasure and was told they'd do what they could, but then covid happened and that all vanished. I've been keeping an eye out on the job market, though not aggressively looking, and have had a few interesting recruiter contacts so far.
The most intriguing one so far is a contract position doing something I enjoy, at a $90/hr W2 rate or $100/hr 1099 rate. I'm currently about $55/hr salaried + benefits, which I think (napkin math) puts me at an approximate W2 contract equivalent of $65-70/hr.
I am comfortable where I am but feel I am significantly undervalued (to the tune of $30-35k/yr), and the array of opportunities arising via recruiters appears to bolster that -- now clearly, I can only properly establish my true market value if I actually get an offer, but that's what I'm working towards now. I am considering the merits of doing a series of contracts to boost my resume experience and salary expectations (though my state recently made it illegal for an employer to ask about salary history so my undervaluation shouldn't hurt me there), and then thought about doing an LLC and working via 1099 instead of W2. If I understand correctly that would give me the opportunity to open a Solo 401k and contribute up to $57k/yr, though I would then be responsible for self employment taxes/etc.
Given that, I figured I'd see if anyone has been in a similar situation and could point me in a direction -- is it worth pursuing life as a 1099 contractor to maximize 401k revenue, or is the general safety net of a permanent staff position something I should place more value on? I have several years worth of living expenses in non-retirement accounts so I can sustain some volatility if necessary, though my goal would be to bank as much as I could out of a lucrative contract so I could ride out any unpaid periods without touching investment accounts.
Ideally my current employer would correct my title to match what I actually do, and adjust my pay scale to industry standard, but I'm not crossing my fingers on that (and given the current financial situation re: covid, I'd feel a bit awkward asking for more money - any advice/suggestions here would also be helpful). If it's relevant, I am in a HCOL area (NJ / NYC metro).