How to invest for retirement?

[psuicyde king]

Hi All,

After researching, I think I know the answer to this, but want to ask to make sure.

I'm looking for the best way to invest for retirement after exhausting the basic retirement investment vehicles.

* My employer does not yet offer a 401k
* I am not eligible for Roth IRA
* I am maximizing my contributions toward a Traditional IRA, which is tax-deductible for me since my employer does not offer a 401k
* I am maximizing my contributions toward my HSA, which is tax-deferred growth

Since I'm employed, I don't think I qualify for an SEP IRA nor a Self 401k.

Are there any other tax-deductible and/or tax-deferred investment vehicles I should be looking at?

Thanks so much for your help!

[J.Apple902]

you are in eligible for ROTH bc you make too much?

[psuicyde king]

you are in eligible for ROTH bc you make too much?

Correct.

[Petunia 100]

Then your best option for further investing is taxable accounts. Keep your most tax in-efficient investments inside your IRA. Trade infrequently in your taxable accounts to minimize the tax hit, but do keep an eye peeled for opportunities to tax-loss harvest. Good choices for taxable accounts include foreign index funds, total market index funds, muni bonds, and funds with "tax-managed" in the title. If you hold any bonds, reits, high-turnover stock funds, or high dividend paying funds, keep them in your IRA to the greatest extent possible.

Some will try to sell you on the idea of investing in insurance products. Don't fall for that.

What sort of company do you work for? Is it new, is that why there is no 401k? Or is it a small company?

[Petunia 100]

Correct.

Just so you know, you can convert some or all of your traditional IRA to a Roth, if you wish. Not saying you should do it, just saying you should keep it in mind.

[psuicyde king]

Then your best option for further investing is taxable accounts. Keep your most tax in-efficient investments inside your IRA. Trade infrequently in your taxable accounts to minimize the tax hit, but do keep an eye peeled for opportunities to tax-loss harvest. Good choices for taxable accounts include foreign index funds, total market index funds, muni bonds, and funds with "tax-managed" in the title. If you hold any bonds, reits, high-turnover stock funds, or high dividend paying funds, keep them in your IRA to the greatest extent possible.

Some will try to sell you on the idea of investing in insurance products. Don't fall for that.

What sort of company do you work for? Is it new, is that why there is no 401k? Or is it a small company?

I founded a start-up. We're looking for the right opportunity to offer a 401k. It's not the right time to offer a 401k yet, for reasons plenty enough to not discuss in the forum here.

We have a small presence in the US, about 8 salaried employees.

[Petunia 100]

I founded a start-up. We're looking for the right opportunity to offer a 401k. It's not the right time to offer a 401k yet, for reasons plenty enough to not discuss in the forum here.

We have a small presence in the US, about 8 salaried employees.

I see. Once you are able to max a 401k, you might want to make non-deductible traditional IRA contributions and then convert them. If you don't want to convert the money already in your traditional IRA, then you should consider rolling your traditional into your 401k (to avoid paying tax on the conversions).

Best of luck to you.

[psuicyde king]

I see. Once you are able to max a 401k, you might want to make non-deductible traditional IRA contributions and then convert them. If you don't want to convert the money already in your traditional IRA, then you should consider rolling your traditional into your 401k (to avoid paying tax on the conversions).

Best of luck to you.

Awesome. Thanks, Petunia!

[jIM_Ohio]

I founded a start-up. We're looking for the right opportunity to offer a 401k. It's not the right time to offer a 401k yet, for reasons plenty enough to not discuss in the forum here.

We have a small presence in the US, about 8 salaried employees.

Does a SEP or SIMPLE plan work? There are two IRS pubs on these, have you read them both?

[psuicyde king]

Does a SEP or SIMPLE plan work? There are two IRS pubs on these, have you read them both?

Hi Jim,

I don't think SEP or SIMPLE are options. I believe the entity has to make the contributions (not the person), and the same contribution has to be made to all employees. That would not work in our company. I'll look into them more, though.