Company 401K or tax time deduction?
I am currently a contract employee. My company will be offering a 401K plan in Jan 2016. There will be matching but only if employees are on the books in Dec 2016. I do not plan to be a contract employee at that time. So is it a better strategy to make employee contributions to the company 401K or just wait until tax time and send money to my existing 401K plans and deduct from my earnings? I am 55 and actually plan to send the maximum allowance to my personal retirement account, but is there any benefit to run the money through payroll to the company 401K?
Here is the response from our Financial Improvement Team:
Congratulations on being in a position to save for your retirement and for wanting to take advantage of your employer’s matching contribution.
Because of the many options and timing involved in making a retirement contribution choice, it’s important to speak with your employer about their plan benefits, your tax advisor, and a USAA advisor (who has already emailed you directly) to review your situation.
Thank you, Happy Holidays!