- W-2 Job = $141,000
- 1099 Consulting = $115,000
I was excited to discover as both an employee and employer of my LLC I can make employer-only contributions up to around $50K to a 401K. I setup a solo-401K through Vanguard which was easy enough but wondering how to calculate the employer contribution? I know it's a percentage of income but I never feel certain I'm getting the tax just right given the IRS calculator. I'd much rather contribute to the solo-401K to maximize it throughout the year rather than waiting until the end of the year to see the final amount.
Would it be worth it to get an accountant and have them start issuing me paychecks and restructure as an S-corp to mitigate some of the self-employment taxes? I've always been willing to roll up my sleeves and use TurboTax but I feel like things are getting more complex. However if it is simply a matter of using some calculators and a rule of thumb (X% per month can be contributed) then I am interested in learning more.