Independent Contractors

Congratulations on becoming an Independent Contractor!
Some basic pros/cons:



  • You are your own boss
  • You may earn more than an employee
  • You may pay lower income taxes


  • No employer paid benefits (sometimes they will cover your medical malpractice insurance)
  • No unemployment insurance benefits
  • Few or no labor law protections


When it comes to your tax advantaged opportunity, always remember the 4 MIZES:

1. Optimize: It’s not about what you make, it’s about what you keep! We can work with you and your CPA to help you determine ways to keep more of your hard earned money.

2. Maximize: Traditionally, what’s the most you can put in 401(k) or a 403(b) at a hospital/practice while earning a W2 income? $18,000 per year ($24,000 per year over age 50). Did you know that as an IC, you can put up to $53,000 per year in a SEP IRA or a Solo 401K? This all pretax money where you are not taxed until you withdrawal it.
Additional penalties and taxes may apply for early withdrawals

3. Customize: Every step of your financial plan can be custom designed just for you and your family. If your family is healthy, perhaps you want a low monthly, high deductible health insurance plan. Or perhaps you want to invest in mutual funds outside of what’s traditionally offered in your hospital’s 401(k). As an IC, you’re free to choose.

4. Fleximize: Your financial plan is dynamic and can easily be changed because you are your own employer.