Powerful strategy for Solopreneurs:
- grow profit well above $200k and become an S Corp (reduce SE taxes)
- Pay yourself a reasonable salary but none more
- Add solo 401(K) and max it out
- Employ spouse, give meaningful work, give fair salary, max out solo 401(k) on the employee side at least
- top off Solo's to 100% of income or $72k max (whichever is lower) via mega backdoor Roth
- Max out Backdoor Roth IRAs for each
- Add a cash balance plan if really profitable ($750k+)
- Funnel rest of money to a taxable account (add direct indexing if you will have future capital gain events)
@CPATaxTeam@uptonaccounting@tax_birdie We used to do them all in house. Then it became too cumbersome. We even have one of the providers do our own payroll, just can't charge enough to make it make sense.
talking to @RingCentral for over an hour here about their AI Receptionist feature. Just cancelled it. They charge per minute and don't have an unlimited feature. I don't believe in having to pay for this service over $200/month when we are already spending $600/month with the risk of still having over chargeds. Any recs on similar services?