401k for students

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boggler
Posts: 598
Joined: Thu Feb 07, 2013 1:29 am

401k for students

Post by boggler »

I'm currently a graduate student and contribute the max to my Roth IRA. This is a common recommendation. However, I never see any recommendations to contribute to an individual 401k of any sort (or a SEP IRA?) Why is this? Can someone explain what might make sense for a graduate student who wants to save as much tax-advantaged money as possible?
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Duckie
Posts: 9767
Joined: Thu Mar 08, 2007 1:55 pm

Re: 401k for students

Post by Duckie »

boggler, individual 401ks and SEP IRAs are employer plans. You have to be either self-employed (i401k/SEP IRA/SIMPLE IRA) or employed somewhere that offers the plan (SEP IRA/SIMPLE IRA). I am assuming you have some kind of a job since you're contributing to a Roth IRA. Does your employer have a retirement plan? Do you have a side gig where you file Schedule C?
Piecake
Posts: 20
Joined: Sun May 27, 2012 3:50 pm

Re: 401k for students

Post by Piecake »

Another option for you is to get on a high deductible healthcare plan and open up a healthcare savings account. It is basically like a traditional IRA that you can contribute 3250 a year to and take out money, tax free, for medical and dental expenses. Some good HSA providers are HSA Bank, Optumhealth, Alliant credit union, and HSA Administrators. Most people seem to go with HSA Bank. Fees kinda suck for all of them
ossipago
Posts: 182
Joined: Wed Apr 21, 2010 4:31 pm

Re: 401k for students

Post by ossipago »

Because grad students get virtually no benefits other university employees do, including access to a retirement plan. (Despite working longer and doing the menial tasks no professor or administrator wants to touch).
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