Hey all, doing my taxes for 2018. I was mainly self employed through a llc and while I contributed to my roth all year-I hadn't opened a sep or such. I made around 34,000 from the llc and 5000 from w2s. This year I have a job (just w2 contractor for now) but looking for a 401k matching job. Would it make sense to contribute to a 401k sep plan for 2018 right now and take the tax break/transfer it later (looks like i could only maximize my break with 4000 contribution)? Another option I am looking at is contributing my maximum to a individual 401k plan (18,500 max plus profit sharing=20,700- will bring my taxes due down 500/state refund up 1000). I'm not sure what the pluses and negatives to each.
I have a weird financial situation right now as I just sold most of my llcs assets so I can pursue higher employment this year. Age 26 (27 in may)
assets: (I have around 1600 of this in stocks/bitcoin which I can sell whenever)
--$68,750 (mostly in checking/savings accounts)
Roth IRA
--$26,300 (1800 contributed 2019, 4200 still to do)
Debts
--5500 in credit cards which will pay off mid this month
--13200 in student loans that interest starts accumulating in july 4% (I plan on paying off with 3 credit cards and getting another 2400 off in reward cash back)
--$2500 2018 taxes (I owe about that, hope to submit this weekend)
-mortgage $112000@5% (purchase price was $141k market says 180/looking to refinance fixed end of this year lower)
This puts me at around $50,000 cash/$26000 ira after all debts are paid down.
My living expenses:
$1200/month (mortgage, taxes, insurance, utilities).
$200 Assorted, gas food etc.
Roth ira contribution $580 or so
health insurance $150
Current income:
$3000/month post tax (no benefits, entry level hourly).
Any advice on what I should be looking to 401k wise? I'm not leaving the door to being self employed closed forever-just temporarily while I look for flexible or much better paying jobs (self employed I would net around 35k a year/working maybe 10 hours/week).