401k contribution outside of employer

[california1977]

Hello,

My spouse's employer did not offer any 401k program, so she could not contribute to the retirement program through her employer. Is it possible to still contribute (for the year 2024) towards 401k and get tax benefit?

Or, is my only option to contribute to Traditional IRA and then get the deduction for year 2024? I see $7000 being the limit which appears pretty low compared to what she would have been able to contribute to 401k if offered through her employer. 

Please let me know what are my best options to get some tax savings. Thank you in advance!

[MaryK4 · Accepted solution]

401k are only available through your employer, so if the employer does not offer a plan, you cannot contribute to one.  Yes, you would have to contribute to a traditional IRA to get the tax deduction.  The $7,000 is much lower than what she might be able to contribute to a 401k, but unfortunately that is the current limit.  If she is over 50, she can contribute an additional $1,000 "catchup" contribution which would be deductible.