Unfortunately, when you work for an organization, and they take out taxes and issue you a W-2 at the end of the year, you're bound by whatever retirement plans offered by that employer. If you don't work enough hours to qualify for your employer's 401(k) plan, then you can't put away any retirement money in connection with that income, except for the the $3,000 into your IRA ($3,500 if you'll be over the age of 50 by December 31st).




One way around this problem is to get a second job from an organization that will pay you as an independent contractor. As long as you earn more than $7,000 from that organization, you can contribute $7,000 into a Simple IRA account.




Another thought is to start contributing to a variable annuity (VA). Amounts contributed to a VA aren't tax deductible, but they do grow tax-deferred. VA's are an option available to people looking to put away more money than is allowed through their employer sponsored plans. Low-cost VAs are available from certain financial institutions, including Fidelity and Vanguard.

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Please help!


I work for Kaiser as a per diem physician and I am not qualified for any of their retirement plans. However, I am given a w-2 form even though I am not their regular employee; so I can't classify myself as an independent contract. What are my retirement options? sep-ira? Traditional Ira? Thanks for your help

Zip Code: cpa@mdtaxes.com