PlayinwithFIRE
Recycles dryer sheets
- Joined
- Oct 9, 2022
- Messages
- 59
I am about to start a new FT job in a very new startup. So new, they haven't quite got their benefits package figured out yet
So i was thinking about what it means to not have a 401K plan at a company...maybe I'm missing something (and i hope you tell me I am) but it seems like this is a quite a big missed benefit.
Most searches of "company without 401K" tell you that you can contribute to an IRA/or trading account or HSA if available...but this all seems to pale in comparison to a 401K.
401K is pre-tax dollars (a 10-20% boost depending on your tax rate) , possibly with a company match, and up to ~$30,000 per year contribution limit , more if you are older with catch-up contributions.
IRA/HSA/Trading is post-tax dollars, no match, IRA limit of $7kish, maybe no limit on HSA/Trading.
Am I missing something? This seems unfair to people who happen to work for a company that does not offer 401K plans.
For me, its a temporary issue as a plan will be implemented but it got me thinking...
So i was thinking about what it means to not have a 401K plan at a company...maybe I'm missing something (and i hope you tell me I am) but it seems like this is a quite a big missed benefit.
Most searches of "company without 401K" tell you that you can contribute to an IRA/or trading account or HSA if available...but this all seems to pale in comparison to a 401K.
401K is pre-tax dollars (a 10-20% boost depending on your tax rate) , possibly with a company match, and up to ~$30,000 per year contribution limit , more if you are older with catch-up contributions.
IRA/HSA/Trading is post-tax dollars, no match, IRA limit of $7kish, maybe no limit on HSA/Trading.
Am I missing something? This seems unfair to people who happen to work for a company that does not offer 401K plans.
For me, its a temporary issue as a plan will be implemented but it got me thinking...