How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12186
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

Hi All, I am working on W2 but company does not have any

This answer was rated:

Hi All,

I am working on W2 but company does not have any pension plans like 401K.
Haw I can save money for the retirement? IRA, SEP-IRA?

Please, advice

Thank you,

NPVAdvisor : Hi ... The only way you can do the 401k or SEP is if the company offers them ... They are workplace plans
NPVAdvisor : BUT, since you don't have them offered, that makes the Traditional IRA 100% deductible for you
NPVAdvisor : Basically the only thing you need to be eligible for the traditional IRA is that you have income equal or greater to your contribution
NPVAdvisor : For. 2013, the maximum contribution is $5500 (6500, if your age 50+)
NPVAdvisor : you can also do a ROTH IRA, which is NOT deductible, but grows without taxation ... And after age 59 and 1/2 can be withdrawn completely tax free
NPVAdvisor : (50 and 1/2 or 5 years, whichever is longer)
NPVAdvisor : given that your income is w-2, these are really the only tax advantaged options against that income
NPVAdvisor : If it were me, I would do the traditional IRA for that immediate gratification of the tax deduction
NPVAdvisor : hopededuction hope this helps
NPVAdvisor : sorry for the typo ... (Hope this helps)
NPVAdvisor : Lane
Lane and other Tax Specialists are ready to help you

Hi, let me know if you further questions .

And if you have OTHER in come, such as self employment income in the side OR if you can have the company pay you as an independent contractor, THE you can do your own SEP, and contribute a much larger amount.

Let me know if I can help further.

Lane and other Tax Specialists are ready to help you