409 | 401(k), Mega Backdoor Roth and the Premium Tax Credit | Sean Mullaney

ChooseFI

Brad Barrett | Choose FI Media

Financialindependence, Investing, Firemovement, Passiveincome, Frugalliving, Personalfinancepodcast, Daveramsey, Careers, Business, Earlyretirement, Habits

4.8 • 5K Ratings

🗓️ 18 November 2022

⏱️ 72 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this episode: w2 employment to self-employment, s-coporations vs self-employment, avoiding penalties, megas backdoor roths, retirement planning, and health insurance.

Most of us are familiar with a W2 job, and there is a certain level of convenience that comes with working a W2 job as it relates to retirement planning and taxes. So much so that it can be daunting to want to embark out on your own journey and have to figure it all out on your own. This week we are re-joined by our “in-house tax expert” Sean Mullaney to discuss the tax and retirement sphere as it relates to being self-employed. While we are not offering advice, this week's episode is meant to act as a resource to listeners curious about the steps and unknowns that come with the self-employment territory. With the same excitement and motivations gained from getting to run your own business, those same motivations and excitements can still be applied to navigating your retirement and taxes once you remember that it is now within YOUR control! The fear of the unfamiliar may not be as daunting and complicated as you may think, and figuring out these factors requires you to take the same initiative and action that is required throughout your entire FI journey!

The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual.

Sean Mullaney:

Website: fitaxguy.com
Book: Solo 401k; The Solopreneur's Retirement Account

Timestamps:

1:42 - Introduction
2:38 - W2 Employment to Self-Employment
11:34 - S-Corporations vs Self-Employment
14:03 - Avoiding Penalties When Making Estimated Payments
19:29 - Saving For Retirement As An Entrepreneur
24:00 - Employee vs Employer 401k Limits and Mega Backdoor Roth
33:54 - Is The Mega Backdoor Plausible For The Self-Employed?
41:03 - Roth IRA Conversions
43:15 - Addressing The Uncertainty Around The Employer Maximum
53:40 - ACA Plans and Navigating Health Insurance As A Solopreneur
63:34 - What Counts As Income?
68:41 - Conclusion

Resources Mentioned In Today’s Episode:

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Transcript

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0:00.0	Hello and welcome to Choose If I. Today in the show we have Sean Malini, the FI tax guy,
0:05.3	and now the author of the book, Solo 401k, the Solopreneurs Retirement Account.
0:11.0	And always excited to have Sean back on the show. We've had him on numerous numerous times.
0:15.7	He is our in-house tax expert, really. It's astonishing the wealth of information he has.
0:21.7	And I always have just a list of topics I want to talk to him about today.
0:26.2	We have kind of a multi-part episode. We're talking about self-employment and taxation.
0:32.4	We're going to of course talk about the Solo 401k. And really importantly, for just about
0:37.5	everyone listening, the premium tax credit for the Affordable Care Act plans.
0:42.8	And this is especially pertinent because we are in the middle of the open enrollment period.
0:48.0	So really timely and pertinent. And I'm just excited to chat with Sean about all of this.
0:52.5	So with that, welcome to Choose If I.
0:54.8	You're listening to Choose If I. Radio.
0:59.6	The blueprint for financial independence lives here.
1:10.4	If you're looking to unlock the secrets to financial independence and early retirement,
1:15.5	you're in the right place. Stay tuned and join a community of like-minded people who are
1:20.5	getting all things to do and taking control of their lives in the pursuit of financial independence.
1:26.5	Choose If I. Your home for financial independence online.
1:42.4	Sean, welcome back to Choose If I. It's always happy to have you here.
1:45.6	Brad, always great to be back and to chat a little tax.
1:49.4	Nice. Yeah, sounds good. And I know you always have a little disclaimer that's very,
1:54.8	very important that frankly we should talk about every episode. But I would love to give you the
1:59.6	opportunity. Yeah, Brad. So today's discussion is an educational discussion, right? Neither Brad
	...

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