Author Topic: Make sense starting solo 401k/SEP with survey money?  (Read 1210 times)

Swat

  • 5 O'Clock Shadow
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Make sense starting solo 401k/SEP with survey money?
« on: May 26, 2016, 07:59:30 PM »
Current situation: PGY2 resident who just started signing up for various medical surveys (per the recs of peers & this site) and am starting to make some solid additional money. While I am doing surveys through multiple companies, several state that they need to send tax information when your totals are >$600, which mine will be this year (I’m already at 500 with that particular company). I’m already maxing out my current 403b, Roth IRA, HSA (loans paid off) but was hoping to get some answer & opinions on the following:

-For those who have done these surveys before, do you get paid as 1099 money? Are you then eligible to contribute additional money as a employer to a retirement account (solo 401k, SEP…)? Just curious as I’ve never done this before.

-While I’m projecting anywhere from $1-2k made in a calendar year, is this worth setting up a solo 401k, SEP, etc… or is it just not worth it for so little amount of money? I’m guessing some say no for that little amount, while others will likely argue that every extra dollar counts.

-If it does make sense, should I go with the solo 401k or SEP? I know several people here preach the solo 401k for the backdoor Roth option, but I am currently able to make direct Roth contributions for the next 2 years (2016, 2017). After speaking with a Vanguard rep, he mentioned doing the SEP for less paperwork/fees roll that money into a Roth every year and then when I become an attending make the switch to solo 401k.

Am I overthinking this? Thoughts?

mousebandit

  • Bristles
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Re: Make sense starting solo 401k/SEP with survey money?
« Reply #1 on: May 29, 2016, 01:40:05 PM »
bump

bacchi

  • Walrus Stache
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Re: Make sense starting solo 401k/SEP with survey money?
« Reply #2 on: May 29, 2016, 04:56:14 PM »
The SEP is a better choice because you can trickle buy ETFs. Vanguard's solo 401k only allows investor fund share purchases, which come with a minimum.