W-2 employee vs...

[Pacun]

I just had an idea that might help you with the 401k dilemma, which you may want to discuss with your employer AND a tax advisor.

You may want to find out if it would be possible for your employer to have you as a W-4 employee, instead of a W-2 employee. If that's possible, you should ask your tax advisor if this change would qualify you to make deductible IRA contributions and/or open your own SEP-IRA or owner-only 401k.

[RitaB]

I just had an idea that might help you with the 401k dilemma, which you may want to discuss with your employer AND a tax advisor.

You may want to find out if it would be possible for your employer to have you as a W-4 employee, instead of a W-2 employee. If that's possible, you should ask your tax advisor if this change would qualify you to make deductible IRA contributions and/or open your own SEP-IRA or owner-only 401k.

Sounds like advisor is steering the employee toward being a contractor? Reminds me of the scene in Mr. Mom, where Michael Keaton is trying to impress the electrician: "220, 221, whatever it takes."

I am currently trying to fix a mess for a vet who failed to mention that his employees now have a 401(k) plan. He's been telling the office manager not to concern herself with any taxes on the 401(k) amounts. Office manager happened to mention it to me on April 14.