401(k) Substitute?

[Eyerishgold]

My wife is accepting a new position at a small company which doesn't offer a 401(k) plan to its employees. Aside from maxing out her traditional IRA, is there any way to make up for the current tax advantages of a 401(k)? She's contributing 15k/yr into her current plan and adding that amount back into her income would have a negative impact on our taxes.

As a side note, I'm contracted as an agent for a 3PL company and have been thinking about incorporating and setting up a solo 401(k). Currently I just max out my IRA's and save the rest in a taxable account. Any advice is appreciated.

 

[brewer12345]

You don't need to incorporate to set up a solo 401k. Sole proprietors are eligible.

 

[pb4uski]

Once she gets settled and knows the players better, might she have a discussion asking if the company can set up a 401k program for its employees? If there is no company match as I understand it there would be no or minimal cost to the company and they could outsource it all to Vanguard or some other reputable player. Could be a win-win.

Another possibility is if you have a high deductible health insurance plan is to set up HSAs for you and DW. We think of ours as similar to a Roth but that we will need to spend the accumulated balances on qualified health care costs later in life.

 

[FinancialDave]

It is pretty important that you also have some Roth exposure, if your income allows.

If one spouse does not have a 401k, it is always possible to do some "income shifting" and load up one 401k, if you feel comfortable about it. To supplement that open up two Roth accounts -- once again if you are eligible.

fd