I have a client that is Single, under 50 years old and earned approx $153K in '06.
She worked for 6 different employers all W2 wages in the health care industry.
On my advice, she made the maximum contribution of $15000 to her 401K with her major employer.
Is there a flaw in the strategy for her work with the smaller W2 employers, to create an LLC, choose to be treated as an 'S' Corp, be paid as an employee in her Corporation, and establish a Solo 401K?
This allows her an additional salary deferral of $15500 through her 'S' Corp and possible employer matches up to 25% of salary paid.
The idea is to maximize her retirement income contributions and reduce her car expenses by using a company provided vehicle. She took a beating on her car expenses which were minimized due to the schedule A and 2106
She worked for 6 different employers all W2 wages in the health care industry.
On my advice, she made the maximum contribution of $15000 to her 401K with her major employer.
Is there a flaw in the strategy for her work with the smaller W2 employers, to create an LLC, choose to be treated as an 'S' Corp, be paid as an employee in her Corporation, and establish a Solo 401K?
This allows her an additional salary deferral of $15500 through her 'S' Corp and possible employer matches up to 25% of salary paid.
The idea is to maximize her retirement income contributions and reduce her car expenses by using a company provided vehicle. She took a beating on her car expenses which were minimized due to the schedule A and 2106