ST Alpha - "can't you guys put your own money into a a 401K (or equivalent) to get the tax break without doing it through work>?" (Reading a Post)

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In response to "because time and time again it has been shown that defering on a pretax basis will result in a greater account balance in the long run" by decline

can't you guys put your own money into a a 401K (or equivalent) to get the tax break without doing it through work>?

Posted by Andie (aka Andie) Aug 30 '10, 09:28

i think he's saying, do it at work up to the match, then do the rest on your own because there will be restrictions on the excess amount that won't be there in a non-work-related account.

(that's what happens here, anyway.)

Responses:

not on a pretax basis we can't . -- nm - decline Aug 30, 09:29 6
- Yes you can. It's an IRA. Though there are different styles of IRA, some of which are pre-tax and others of which aren't. -- nm - pmb Aug 30, 09:31 2
  - true, but if you contribute to an 401k plan, you lose the tax deductibility of the IRA phases out as your income increases -- nm - decline Aug 30, 09:34 1
    - hmm, kind of garbled. Traditional IRA's are tax deductible (essentially making them pre-tax) but only 100% if you are not coved by a 401k - decline Aug 30, 09:35
- wow, that's kooky. -- nm - Reagen Aug 30, 09:30
- what if you are self employed? -- nm - Andie Aug 30, 09:29 1
  - if self employed you can have what is called a SIMPLE plan (which is kind of like a mini-401k) -- nm - decline Aug 30, 09:31

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can't you guys put your own money into a a 401K (or equivalent) to get the tax break without doing it through work>?

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