I was recently fired (don’t know why) and will be starting a new sub contractor job paying 1099 (I am responsible for all expenses). Rate is still being negotiated but lets say I get 1.2K a day. Severance is also being negotiated and let’s say I get about 150K. How should plan for these two scenarios:
The subcontract job lasts for the whole year
The subcontract job lasts for several months and then I get converted to full time W-2
I will be on cobra at 1K a month and will probably utilize HSA.
My goal is to keep maxing out on retirement for the year (62K for retirement + 6.5K IRA) and hopefully minimize on tax payments (will pre-pay estimated tax with alliant CC). I assume the severance pay can be used to contribute to a solo 401K? Also under 2nd scenario I think I will defer any retirement contribution (solo 401k) so that I can get company matching down the road (can I contribute to solo 401K anyway and then at the end of 2019 decide to withdraw over contribution?).
I have always been a W-2 employee before so I am clueless. Should I do S-Corp or just sole proprietorship? I am in CT (will be commuting to NY for the job) if that matters.