What to Do if You Don’t Have a 401(k)


Filed under: Retirement


Planning for retirement can be confusing for all of us. But if you’re one of the 38 million private-sector workers who don’t have access to an employer-provided 401(k), you’re probably feeling left out of the conversation entirely. We hear you! If you’re wondering how to save for retirement in this circumstance, we do have some ideas to consider.

First, ask your employer. He or she might not be aware that there are tax credits to help small businesses provide employees with a retirement savings plan. Plus, they should know that their employees are interested in this option, in case it becomes more doable for them in the future.

Also, switching your tax status from W-2 employee to an independent contractor (1099 employee) can help you access options such as a SEP IRA, individual 401(k), or even a self-funded pension. There will be tax implications for this decision, though, so consult a financial professional first.

Fund a health savings account (HSA). If your employer provides you with a high-deductible health insurance policy, you are probably eligible to open a health savings account. With this type of account, you can stash pre-tax money (and reduce your taxable income each year) for uncovered healthcare expenses. Unused funds in the account will roll over into each subsequent year, all the way into retirement.

Most people think of these accounts as a convenient way to handle their deductible each year. But since you keep unused funds in the account, you could theoretically use an HSA to save money for healthcare expenses in retirement (like Medicare premiums, co-pays, medications, dental care, and so on).

Open an IRA. Those who don’t have access to a workplace 401(k) can often open and fund an Individual Retirement Account, or IRA. You can choose a Traditional IRA, into which you deposit pre-tax dollars now and defer income taxes until retirement, or a Roth IRA, which allows you to stash after-tax money and then enjoy untaxed distributions in retirement.

If you’re interested in any of the above options, come meet with us and we’ll discuss them in more detail. Retirement planning is a complicated topic, but it’s important for everyone. We can answer your questions and guide you toward an option that works for your situation.


If you would like more information or have specific questions, please contact us using the following form. We would be happy to assist you.

This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .