What is the name of your state (only U.S. law)? California
Hi,
I've worked for a temp (contracting) agency as a W-2 contractor since April 2012. The contract was initially set to run for 1 year, but the client kept me on. How much longer it will last is something I have no way of knowing.
Up until now, they have not offered either medical benefits or a 401k plan. So every year, I buy private insurance and contribute the max allowed by the IRS to an IRA. Since I'm over 50, I've been able to invest and deduct the full $6500 each year when I file my taxes.
For 2015, they're offering both medical (albeit bronze level PPO pre-tax) insurance as well as a 401k through Great West Financial. I've already signed up for their health insurance since even the cobra amount is cheaper than anything decent offered through the Covered CA site and way cheaper than private insurance.
I'd love to join the 401k plan but have a concern.
If I join the plan, I will no longer be able to deduct the IRA amount for 2015, and if for whatever reason, I'm let go early on in the year, the total amount invested won't be anywhere near the amount I'd be able to deduct had I just stuck with a deductible IRA. Based on what I'd like to have them set aside, it will take me roughly 11 pay cycles (22 weeks) to hit the $6500 mark. And because everything is handled manually at the temp agencies end through their benefits department, there's no way to log in and easily change the amount withheld to accelerate the process. Every change would need to be handled manually by them.
Do I have any other options? Let's say they start deducting my 401k contribution but let me go mid January am I just stuck for the remainder of the year without the IRA write-off?
I greatly appreciate all suggestions and comments.
Thank you in advance,
Bonnie
Hi,
I've worked for a temp (contracting) agency as a W-2 contractor since April 2012. The contract was initially set to run for 1 year, but the client kept me on. How much longer it will last is something I have no way of knowing.
Up until now, they have not offered either medical benefits or a 401k plan. So every year, I buy private insurance and contribute the max allowed by the IRS to an IRA. Since I'm over 50, I've been able to invest and deduct the full $6500 each year when I file my taxes.
For 2015, they're offering both medical (albeit bronze level PPO pre-tax) insurance as well as a 401k through Great West Financial. I've already signed up for their health insurance since even the cobra amount is cheaper than anything decent offered through the Covered CA site and way cheaper than private insurance.
I'd love to join the 401k plan but have a concern.
If I join the plan, I will no longer be able to deduct the IRA amount for 2015, and if for whatever reason, I'm let go early on in the year, the total amount invested won't be anywhere near the amount I'd be able to deduct had I just stuck with a deductible IRA. Based on what I'd like to have them set aside, it will take me roughly 11 pay cycles (22 weeks) to hit the $6500 mark. And because everything is handled manually at the temp agencies end through their benefits department, there's no way to log in and easily change the amount withheld to accelerate the process. Every change would need to be handled manually by them.
Do I have any other options? Let's say they start deducting my 401k contribution but let me go mid January am I just stuck for the remainder of the year without the IRA write-off?
I greatly appreciate all suggestions and comments.
Thank you in advance,
Bonnie