W2 Server with a 401(k) transitioning...

[Derrick Camber]

Hi Everyone,

I was reading Amanda Han's great tax strategy book and was thinking along the lines of the Solo 401(k) to put my money to get a tax deduction and use to fund deals. I am currently a W2 Wage Earner in So Cal. working as a server 5 nights a week. They offer a 401(k) and I was invested in it. I recently stopped because like most I dislike mutual funds and since I keep my tips nightly, I make so much compared to the minimum wage bi-weekly paychecks, that they had not enough money to withhold my taxes above my 10% contribution. My only reason why I was using the 401k was to get the deduction and to take a loan against my 401k in the near future for a down payment on my first property. So now I have this account sitting there for the past 2 months and need to move it somewhere. I am going to start Uber on the side so I will then also be 1099'd self-employed contracted to work for them. The main focus is I am opening a Property Management Company in my area that I use to have with a partner. I know once I do that I can do open a solo(k), what are my options right now besides the rollover IRA, or ROTH Conversion? Remember, I make $80k a year W2 as a server and have no properties yet! I do not want to invest in stocks and rather pay a penalty to close the 401k and get cash to put in a boring savings to use for my first down payment, rather than invest in stocks and potentially lose my money. I also get no employee match at work! Thanks