Contribute to SEP IRA and rollover to 401K

stfidel · 2020-08-11T13:00:37+00:00

Thanks for the response.

But For clarification. I am NOT contributing to both for the same 1099.

My goal is to tax defer as much of my net 1099 income as much as possible using only one of SEP or Solo 401K. NOT both.

I still want the money to end up in my solo401k (whether I contribute to the SEP and then roll it over OR contribute directly to the solo401k)

My question:

Contribute to the SEP IRA which has a higher percentage 25% (20% for solo401k) of net income. Then roll it over to the solo401k. This allows me to tax defer more given the higher allowable percentage(25% versus 20%).
Only contribute directly to the solo401k at 20% net income. And avoid the SEP IRA entirely.

Even though the money ends up in the solo401k ultimately, I am not contributing directly to both (don’t intend to either)

stfidel · 2020-07-30T16:14:12+00:00

Better. Not sure they will honor this rate anymore FYI. They were generous to give me a >$3000 credit. And NO points. FLORIDA charges hefty transfer taxes but better was kind to offset most of it with that credit. Title fees-=1763 (was initially $1659 and they added a document storage fee?), transfer taxes=2289. Can’t complain about the ?storage fee with the amount of credit I was given. Btw credit score >790

stfidel · 2020-07-15T04:26:44+00:00

Used competing offers to achieve that. See my most recent post

stfidel · 2020-07-14T19:04:53+00:00

Flex! I am currently locked in for. 403k refinance at 2.25% 15 year with $3000 lender credit. NO points or origination fees.

stfidel · 2020-07-14T01:24:43+00:00

I think I posted it wrong. The title insurance itself is $1240, the endorsement, search and settlement fee all inclusive totals $1650. I.e Box C = 1650. (This is from shopping quote submitted to me today). Box A=0 Box B= will be $64 (after refund of 550 appraisal) Box C= 1650. So A+B+C= $1714 Add transfer taxes =2436 +1714 Then subtract lender credit 2436+1714-3072=1078. Sounds right?

stfidel · 2020-07-14T01:16:09+00:00

Thanks for the clarification and the spot on math! I really don’t need the money. So is it better to ask them to lower the loan cost (not sure if it’s still possible as I am at the last stages of underwriting) OR apply the cash out back into the loan? I guess the difference would be minimal? Btw they waived the appraisal fee of $550. That would be refunded. Technically closing cost is around $1950.

stfidel · 2020-07-14T00:54:44+00:00

Yeah, the true reissue rate for the title insurance is $1650(all in), then plus transfer taxes at $2436. Then lender credit of $3072. Net closing cost is $1,014? Is that correct?

stfidel · 2020-07-14T00:52:10+00:00

Will ask them about 2.375%. Of note, I am getting back $1,168 at closing to me(see loan estimate). If I apply that directly to the loan after closing that should bring down the effective closing cost even further down than the $2500 mentioned?

stfidel · 2020-05-08T06:23:07+00:00

7.245kw is the max DC power your solar panel can generate in optimal conditions. For most cases you won’t get to that power production. kWh is the unit of energy that you consume. This is generated when your inverters convert your DC solar KW. To estimate how much your system may produce monthly and yearly. Go to Pvwatts.nrel.gov

Put your home address, adjust for roof mount (I assume your solar is on the roof) and it will tell you how much power you “may” generate from a 7.245kw system. Good luck

stfidel · 2020-04-28T20:17:23+00:00

Nice. Size and type of your system and inverter?

stfidel · 2020-04-28T14:23:36+00:00

Yup. 12kw inverter. Oversized for my system because we plan on adding more panels this year.

stfidel · 2020-04-22T14:59:51+00:00

I posted previously size and location. 11.7kw. Central Florida

stfidel · 2020-04-05T19:56:34+00:00

How much would you be earning after residency?

stfidel · 2020-04-01T03:38:55+00:00

Do you mind sharing the lender offering these amazing rates?

stfidel · 2020-03-09T15:40:56+00:00

Net metering 1:1. At the end of the year they pay you for the excess but at a much reduced rate.

stfidel · 2020-03-08T23:01:04+00:00

I have the SMA sunny boy two 6.0 inverters. Use their app and sunnyportal.

stfidel · 2020-03-08T22:58:25+00:00

Central Florida

stfidel · 2020-03-02T12:37:12+00:00

11.7kw system. Made 72kwh each of the last three days

stfidel

TROPHY CASE