Options if no 401(k) at new job

[freeatlast]

I posted this under "ask a musician" - but maybe it belongs here instead!

Hubby is taking a new job where he can't join the 401(k) for a year and a half which is a bummer.  We make enough wherein the tax reduction for investing pre-tax dollars is valuable.  Is there any way around the caps on the IRA? Any thoughts on tax favorable investments for him while he waits to get into the plan?

Love this board. Thanks all!

[Paul der Krake]

Short of starting his own business and rolling out an employer plan himself, the answer is no. Sorry.

In the meantime, make sure you max out every other tax-advantaged vehicle available to your household.

[Heroes821]

Alternatively, can your husband talk to HR and request that they allow him to join the 401k immediately but have them not match until the 18 months is up?

If he hasn't signed the contract yet, it shouldn't be hard for them to change it, he can probably explain how important retirement savings is for him and how it doesn't really affect their bottom line if they simply allow him to contribute.

[NoStacheOhio]

I'm curious about where this falls in the "covered by employer plan" IRA deduction rules. If it's an 18 month exclusion, then that's going to cover a full tax year, so wouldn't you be able to deduct contributions under $186k MAGI for MFJ? I get that if you're covered by an employer plan for any part of the year, it counts for the whole year, but where does this fall?

[SeattleCPA]

Short of starting his own business and rolling out an employer plan himself, the answer is no. Sorry.

In the meantime, make sure you max out every other tax-advantaged vehicle available to your household.

I think if your husband isn't eligible that you have at least the IRA option available... and possibly, depending on your household income, a spousal IRA available too...

Here's a source:

https://www.irs.gov/retirement-plans/are-you-covered-by-an-employers-retirement-plan