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Primary Self-Employed Retirement Setup
- If you are self-employed, open a solo (individual) 401(k) as your primary retirement vehicle.
- Use a backdoor Roth IRA and an HSA if eligible, and put excess savings in taxable accounts.
IRA Contribution Year Clarified
- You can contribute to an IRA for the previous tax year up until you file your taxes the next year.
- Specify the tax year when making the contribution so it counts correctly.
Avoid SEP IRAs With Backdoor Roths
- Avoid opening a SEP IRA if you plan to use the backdoor Roth IRA annually.
- Open and use a solo 401(k) instead to keep IRA balances at zero for Form 8606 simplicity.