I know of 401k (and 403b) for workplace programs. What about second jobs which are either LLCs, sole proprietor ships, or similar self employed endeavors? This is for a second job, and I am looking for options to defer income.
A friend and I were talking about this earlier in week. Our situations are similar, but have enough differences where what applies to one of us does not apply to other necessarily.
Me: I work for a publicly owned company, have a 401k, and send close to 7k to this plan (before the match). I also max out my Roth (did not know I could use a deductable IRA until this morning). I also work a second job (coaching soccer) which clears me 10k per year. Some of this is reported on a 1099, some of this is not. I have no legal company set up. What would be my best choices to defer taxes on this income (for retirement)? One follow up question will be if the 15500 401k limit interferes with the amount I can defer from a second job.
Friend: He is a firefighter (works for township) and has a government pension plan. I am not not sure if this is considered a 403b or 457 type plan or not. Neither did he. No other workplace retirement plan, and I don't think he has an IRA set up (yet). He also owns his own safety company (does training and workplace audits), and also flips/rents houses when the other two don't keep him busy. The safety company is a LLC. What choices would the LLC provide for deferring income for retirement?
If there is a portion of IRS documents which cover this, please point me there first (so I can do some research). Any other comments are welcome.
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