W2 CONTRACTOR Retirement Funds

[jfoxcpacfp]

winnedafoo wrote:

Hi, I am in a similar spot.  I am a W2 contract employee at a large HMO.  They say I cannot contribute to the 401k –  can you please point me in the direction of how you found the law stating I am able to do so?

Thanks so much!

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I would suggest you reach out directly to erichte (hope s/he's still a follower) and find out who s/he talked to. This is pretty unconscionable.

Also, you'll get a lot more response if you start a new thread instead of tagging onto one that's over a year old. I realize you're a new poster, and these things sometimes get overlooked. More readers for new threads. Old threads mostly get parsed among the original followers. Good luck.

[winnedafoo]

Thanks - I will start a new thread!

 

For some reason, whenever I click on the username of the original poster, it gives me a server error, meaning I can't seem to send a DM to the user.

[jfoxcpacfp]

winnedafoo wrote:

Thanks – I will start a new thread!

 

For some reason, whenever I click on the username of the original poster, it gives me a server error, meaning I can’t seem to send a DM to the user.

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I noticed the same this morning and sent a message to WCI. Your message helps pinpoint the time, thx,

[erichte]

Hey winnedafoo,

So after much debate with my w2 employer at the time and speaking directly to Fidelity ( who they used for investing) I was able to contribute to the company 403b. Essentially I just did some solo research and found out that as an employee they have to offer you some sort of retirement plan as long as they actually have one for employees and you meet their various requirements (work min amount hrs etc). Now what they don't have to do is match b/c you are considered contractor. I was personally ok with this b/c I was leaving that job well before I would have been vested anyways. I spoke to fidelity and told them I was a FT employee and they set me right up. Hope this helps.

[Bogie522]

Hello, I'm actually dealing with the very same thing. I'm a W-2 Consultant, I make too much to contribute to a traditional IRA, my Roth IRA is maxed out for the year, and I'm not eligible to contribute into my employers "consulting firms" 401k. Why are there no tax deferred options for w-2 consultants when the market has made 1099 or C2C options available. At least with C2C or 1099 I could open a SEP IRA or a Solo 401k.

 

Is there anything I can do except let my money sit in a savings account that gets barely any interest, or invest a brokerage that may or may not do well with my money?

[jfoxcpacfp]

Bogie522 wrote:

Hello, I’m actually dealing with the very same thing. I’m a W-2 Consultant, I make too much to contribute to a traditional IRA, my Roth IRA is maxed out for the year, and I’m not eligible to contribute into my employers “consulting firms” 401k. Why are there no tax deferred options for w-2 consultants when the market has made 1099 or C2C options available. At least with C2C or 1099 I could open a SEP IRA or a Solo 401k.

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That's the purpose of a 401k account - it is for employers to sponsor. Employees usually take benefits into consideration when weighing the merits of various job offers. As a 1099 worker, you are considered your own "employer".

Bogie522 wrote:

Is there anything I can do except let my money sit in a savings account that gets barely any interest, or invest a brokerage that may or may not do well with my money?

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Yes, you can still invest in a "taxable" brokerage) account. Retirement savings is not limited to tax-advantaged accounts decreed by the government. In fact, there are many advantages to a taxable account. This post, 11 reasons you need a taxable investment account, should be helpful.