Possible to save before tax dollars if job does not offer a 401k?

[Moab]

Say your job does not offer a 401(k) and you want to save for retirement. Is there any way to do this?

People with 401(k)s can put money away before it's taxes and save in the long run and get taxed less in the short run.

Is anything like this possible for people who do not have 401(k)s?

 

[rufruf44]

Yes, open an IRA. Much lower limit than 401k though.

 

[Moab]

IRA does not let you save pre-tax dollars.. just tax free when you cash it out (Roth IRA anyway)

 

[kranky]

Originally posted by: Moab
IRA does not let you save pre-tax dollars.. just tax free when you cash it out (Roth IRA anyway)

That's what differentiates a Roth IRA from a traditional IRA. A traditional IRA has tax-free contributions.

 

[Metron]

You can also use an SEP if you're self-employed. You can contribute up to 25% of your annual income to an SEP, however you can't take a loan out against your SEP (unlike a 401k).