The Delima/ High Income W2 employees with no Qualified Plan in place.
What to do if individuals are W2 employees and company does not have a Qualified Plan in Place. I assume they cannot open up a Solo K, SEP or SIMPLE on their own and has to be done by the employer? There are no existing IRA’s so a backdoor Roth may be the only choice? Any thoughts or ideas for individual is this situation?
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2024-02-05 15:51
They are limited to IRA contributions. The individual’s income is probably low enough to contribute to a Roth IRA directly, since employers with no plan are unlikely to be paying high wages to anyone. But if married, the spouse’s income must be considered. If income is too high for a direct Roth contribution, the back door Roth process can be used. Or the individual might qualify for a deductible TIRA contribution.