A little bit of background: I'm a single 27-year-old owner of a single-member LLC video production company in Portland, Oregon. I often hire 1099 independent contractors (camera operators, editors, etc.) but do not have any full-time or part-time W2 employees.
On the side, I also do on-camera acting (as an individual, not through my LLC) for which I receive many W2's from different studios at the end of the year. However, the large majority of my income comes from my video work under my LLC.
Having never worked for a larger company, I do NOT have an employer-sponsored traditional 401(k) plan. I DO max out contributions to my Roth IRA every year, but I'm now looking for another tax-advantaged retirement investment account with much higher contribution limits.
I do not plan on hiring on full-time or part-time W2 employees any time soon, but would like the ability to roll over my plan into something else should the company grow and I end up hiring full-time or part-time W2 employees down the road.
I am not an active investor and don’t want to be. Have jumped on board the robotrader trend with my Roth IRA through Wealthfront, and don’t want to have to manage things too much. Definitely just passively riding down the long-term, conservative, ETF/index fund road, relying on good old fashion compounding interest - and with that, I’m trying to invest as much money as I can now while I’m relatively young.
— Now to my questions —
The three tax-advantaged options I see that I have are: Solo 401(k), SEP IRA, and SIMPLE IRA.
First: am I eligible for any of these plans if I’m hiring on 1099 independent contractors regularly?
Second: does my W2 income from multiple employers (from my acting) affect my eligibility?
Third: if no, does anyone have any advice for which may be the best option for me given my situation laid out above?
Fourth: are there other options I’m totally missing?
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Thank you in advance! I’m trying to learn and be as strategic with my money as possible, but don’t have anyone to turn to in my same situation willing to dish out advice.
Submitted May 17, 2019 at 08:46PM by cudcancutit http://bit.ly/2YAQhml
