Howdy... Just got out of a meeting with the CEO that I consult for and I was notified that they are making me a W2 employee. The past several years they have paid my LLC S corp about $185k for consulting work (independant contractor). They are my main source of income at this time.
For the past 3 years or so I've been maxing out my Roth IRA, and solo401k (including employer contribution).
I'm a bit concerned with this news and change. I won't have the write off's and might not be able to stash away cash to my investment accounts. He told me not to overfund my retirment accounts for fear of locking up that cash. He tells me they are going to setup SEP/401k options for me, however, I don't think it'll be as big as my own contributions have been.
I'm 33, wife is 29.
No debt other than the house @ $296k, it's worth about $450k.
Roth & solo401k @ $183k.
Cash @ $41k
What's everyones thoughts on this situation, I'm a bit shocked and don't like the change at this time? I don't like to deviate from my plan. Was hoping to ride this wave for a few more years... then coast into ER. My knee jerk reaction is to just roll with it, and try to get a few new clients to keep my LLC S corp moving with revenue.
Maybe this is a sign that I need to build out more and get more consulting clients.
Thanks all!
For the past 3 years or so I've been maxing out my Roth IRA, and solo401k (including employer contribution).
I'm a bit concerned with this news and change. I won't have the write off's and might not be able to stash away cash to my investment accounts. He told me not to overfund my retirment accounts for fear of locking up that cash. He tells me they are going to setup SEP/401k options for me, however, I don't think it'll be as big as my own contributions have been.
I'm 33, wife is 29.
No debt other than the house @ $296k, it's worth about $450k.
Roth & solo401k @ $183k.
Cash @ $41k
What's everyones thoughts on this situation, I'm a bit shocked and don't like the change at this time? I don't like to deviate from my plan. Was hoping to ride this wave for a few more years... then coast into ER. My knee jerk reaction is to just roll with it, and try to get a few new clients to keep my LLC S corp moving with revenue.
Maybe this is a sign that I need to build out more and get more consulting clients.
Thanks all!
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