What company?
It's a contracting company.
Is there any way to switch to a better contractor company?
I would find another employer that provides proper benefits. This company you are at doesn't seem to value its employees very much
Agree but I just joined the company. I am surprised to know that there does not exist any other investment/retirement option to reduce your taxable income.
They are running a lean operation (can't blame them) banking on finding newbies enamored with Si valley life that they can use. They probably have an expectation of losing a high percentage of good people but will fill the slots with others fast.
>I am surprised to know that there does not exist any other investment/retirement option to reduce your taxable income There does, and it's called an IRA, but you probably earn too much to qualify to use that.
Specifically it's called a Roth IRA and there are income limits for deductible contributions. But if you're less focused on reducing your taxable income this year and more focused on maximizing your non-taxable withdrawals of compunded earnings on retirement, you can always deposit into a traditional IRA then backdoor convert into a Roth.
I was under the impression Vanguard would offer individual 401k plans? Check out their website. Try also Wealthfront, for example. Can you also not just stick to the 401k of the previous employer?
There are restrictions on who can use individual 401k. If he was contracting under his own S-Corp where he was the owner and sole employee, he could use it. Not as an employee of a business that doesn't offer it. https://www.irs.gov/retirement-plans/one-participant-401k-plans
+1 This is precisely when you set up a side hustle purely to feed your individual 401k/SEP IRA coffers
How do you not meet the IRA criteria? There almost is none.
Of course there is. * Income limit. (Roth) * Lower caps 5.5 vs. 18k
Were not discussing roth. An IRA has no income limit.
There is an income limit for IRA contribution. Also, IRA contribution is limited as compared to 401k.
No there's not. There's only a income limit for a ROTH. Invest in a brokerage account. Your options are limited. Change jobs if you want the 401k...
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