403B, Traditional IRA, HSA, and SEP IRA

[money_bunny]

Hello,
 
So I am dipping my toe into semi-FIRE. Work changed my position with no warning and I used the privilege of having "Fuck You" money. I have a years savings in Checking, and then moved all of my income from my first month and almost 5 weeks PTO into almost maxing out my 403B (which in NJ ls taxed) for 2017.

I'm on an ACA (Obamacare) plan, and will either stay on or RyanCare if they develop it,  so need to keep my income to about 25K. I'm really focused on reducing my income and not touching the stash for as long as possible but not working full time. My expenses are about 25-30K a year. My 100K income in NJ was being taxed at about 45% so it makes since to work less and keep more at this point.

I have a temp Nurse Practitioner job that is a 1099 income position starting Monday. Should be about 13K over the 13 weeks and then it will be warm and I can decide what I want to do next. I think I also need earned income to put into the IRA and the HSA.

So 15K in the 403B from my regular job, then 5500 in the Traditional IRA (which is deductible at this income level, and then even the savers credit?) 3300 into the HSA. Anything I can do to keep my income down and allow me to Roth Pipeline more.

So now what I was thinking of doing was starting a SEP IRA for the 18% or so percent to get that last 3K.

But I was reading that the SEP-IRA as a IRA product will eat into the space of the Traditional IRA? I have the IRS publications but this is a bit complex.

I also am trying to figure out how do I put the money into the SEP-IRA. Open it up, work the 13 weeks then write a check to Vanguard of the correct amount? I have IRS publication 334 open about this. There must be a 1099 employee form/schedule like the Schedule E for real estate that I will need to learn to use next March.

Thanks in advance.

[DavidAnnArbor]

But I was reading that the SEP-IRA as a IRA product will eat into the space of the Traditional IRA? I have the IRS publications but this is a bit complex.

You can put money both in a SEP-IRA and a traditional IRA at the same time, they are not mutually exclusive.

Honestly though I'm confused by all the different jobs you were talking about.  If you could explain your situation in a more straightforward manner that would help. I don't even quite understand which tax year you are talking about - 2017 or 2016?

[Laserjet3051]

But I was reading that the SEP-IRA as a IRA product will eat into the space of the Traditional IRA? I have the IRS publications but this is a bit complex.

You can put money both in a SEP-IRA and a traditional IRA at the same time, they are not mutually exclusive.

Honestly though I'm confused by all the different jobs you were talking about.  If you could explain your situation in a more straightforward manner that would help. I don't even quite understand which tax year you are talking about - 2017 or 2016?

I have both a tIRA and SEP-IRA, they are mutually exclusive. Contribution to one, does not eat into the space of the other.

[money_bunny]

How do you indicate that money from the 1099 income was put in the SEP IRA on your taxes?

[DavidAnnArbor]

Line 28 of the 1040

[money_bunny]

Thanks, I did some more reading and "It's all there! Black and white, clear as crystal!" Right there at the bottom of the 1040.

To answer your question above David:

I'm pretty flush for this year.

I worked a month at my hospital job in 2017. Plus the first pay period contained the last week of December.  Also was owed about 3 weeks of PTO. That comes to about 15K. I had them put that all in the 403B.

Then I took a 1099 independent contractor job, and plan on contributing about 3K of the 16K I am making there since I can only take out 18.?? percent not the full 25%. Thats 13 weeks since I am not sure what to do with myself when I am not at work.  I could probably stay on a little longer after or once in a while.

I'm trying to keep my income to about 22-25K for ACA and tax benefit reasons.

This includes something like 5-7K in qualified dividends.

I then also plan on maxing the HSA as part of ACA plan that I have, and the TIRA.

I'll fill up to the 25K bucket with Roth rollovers at the end of the year if I need to.

Hope that clarifies.

If the ACA gets canned I can either go back to work full time or maybe Ex-Pat somewhere. Baja Mexico right now is what I have in mind.