Tax strategies for side gig income
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Anonymous
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I am a W2 employee and max out my 401k contributions, and also do a back door Roth every year. Separately I have started consulting under a pass through LLC. I am trying to figure out if there are any tax strategies I should consider for the consulting income, like setting up a SEP IRA (and if so, whether I can convert that to a Roth 401k).
Essentially the side gig is a true side gig but I am having a good year and want to think about tax implications. Also welcome any recommendations for a CPA in NoVA, thanks! |
Anonymous
| yes you should look into back-door IRA or mega backdoor IRA from the SEP... there are some good websites with approaches to this... |
Anonymous
Thank you! And I have googled a bit, but appreciate and recos of helpful websites or low cost administrators. I’m fairly consolidated with Vanguard now. |
Anonymous
| Also, look into a solo 401k. I have a friend in similar situation and she is doing one to channel a good portion of her side gig earnings. But the tax implications are not as straightforward as they are for W-2 earnings. |
Anonymous
| How will you do a backdoor with a SEP? |