Employee choosing own type of retirement account, other tax deductions?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
humpty
Posts: 15
Joined: Mon Jan 01, 2018 3:12 pm

Employee choosing own type of retirement account, other tax deductions?

Post by humpty »

Hi, my work is willing to negotiate in order for me to work there more and I'm wondering which retirement account would be best for myself. My wife has a 403b which we max out and our MAGI is about 265k. We have health insurance via my wife's work so don't qualify for HDHP/HSA.

The employer currently has a 401k plan that the other employees enroll in via their union (I'm not part of a union). I, and the employer if he wishes, would be the only ones in the retirement plan and the employer will not match any contributions. I don't imagine myself being here long term and my income will be lower in retirement.

Other than the traditional 401k that has access to low cost index funds, would it be advisable for them to open a SEP IRA? I would be able to put away a large amount towards it (~50k) which may further allow me to contribute to a roth IRA.

What other deductions could the employer offer would help a high income earner? I also thought about having them pay for some Continuing Education but only if they can't do the SEP IRA.

Thanks!
InvestSmart8
Posts: 5
Joined: Mon Nov 29, 2021 10:12 am

Re: Employee choosing own type of retirement account, other tax deductions?

Post by InvestSmart8 »

Will they allow you to contribute to that 401(k)? It'll allow you to put $20,500 for 2022.

If many of you want to put more than $20,500, they can amend the 401(k) plan to allow for after-tax 401(k) contributions. This will allow you to do a "mega backdoor" Roth. Here's more info about that:

https://districtcapitalmanagement.com/m ... door-roth/
Post Reply