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Financial Planning / Foolish 401(k)s


Subject:  Re: New job/No 401K Date:  1/23/2012  9:19 AM
Author:  Hawkwin Number:  24820 of 26341

Another option would be to talk to your employer and fellow employees and see if you can gain their support in getting your employer to offer a 401k - or perhaps as a compromise, a SIMPLE IRA.

Your employer could offer a SIMPLE IRA at no cost to them - if your peers would be willing to give up 3% of their salary to the plan. The employer must contribute to the plan and the employee is not required but if your peers will take a 3% reduction in salary, the employer could instead pay them in kind via the new plan. IIRC, the minimum required contibution for the employer is 3% for FTEs that have been there a year. Max contribution is around $12000 so much better than doing an IRA on your own - and you could still do a Roth on top of this.
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