Hello everyone! I've been planning a move to Mexico for sometime and my work recently caught wind of it. I am very well respected at my place of work. I recently won Employee of the Year and am central to the development of our organization. They really want to keep me. I am a software developer. I make a solid, if a little low for the industry, salary.

My company asked to start thinking about moving from W2 -> contractor ahead of the move. I plan on moving in August. So.. my question is.. what do I start thinking about? I obviously will lose healthcare, access to generous 401k, and will start paying my own taxes. As such, I'll likely ask for an hourly rate ~40% higher than what I currently take home. What else should I think about?

Also, a tax question. I understand that I will still be subject to federal income tax. My current state has a high income tax. Is there anyway I can avoid paying this state income tax if I do not reside there? Lastly, what do you do aside from an IRA to plan for your retirement? Is a SEP 401k an option for you?

Thanks and look forward to getting some answers. So excited!