No 401K, No Problem

401k plans have been popular ever since they were first introduced in 1978. In fact, today, they are the most common type of employer-sponsored retirement plan available in the United States. If your employer doesn’t offer this option, though, or if you’re otherwise ineligible for one, the fact remains that you still have to save for retirement, and, fortunately for you, there are some ways you can do so that are just as good as a 401k.   

Consider an IRA

One option to consider in place of a 401k is to open an IRA. These accounts allow you to save as much as $5,500 per year tax-deferred. Your contributions will lower your table income, and you won’t face any penalties or taxes until you make a withdrawal.

Even more good news- once you are over fifty, your contribution limit will rise to $6,500 per year- double for married couples.

There are, of course, several different types of IRAs that you can choose from, so it’s smart to talk to a financial adviser about your particular situation to ensure you find the very best IRA for your needs and goals.

Try a Tax Brokerage Account

After you’ve contributed all you can to your IRA, you may want to think about opening a tax brokerage account. These accounts may not be tax-deferred, but, with the help of a financial adviser, you can discover and use methods to help you minimize your taxes.

These two methods can be very good alternatives to a 401k. Remember, too, that you can always stash away your own money- as much of it as you can- in a savings account. These accounts may not have all of the benefits of true retirement accounts, but, if you use your savings in addition to your retirement accounts, you can end up saving quite a lot to help you do just fine in retirement!