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No 401(k)? No problem
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August 29, 2000: 12:19 p.m. ET
Saving options when your company does not offer any retirement plan
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NEW YORK (CNNfn) - While many companies offer retirement options for their employees, there are still a number who don't. So if you happen to work for one of these companies, what is your best approach for jump-starting your own savings plan?
In answer to a reader's question, Marc Collier, a certified financial planner from Wellesley, Mass., and a member of the Financial Planning Association, suggested choosing one of several IRAs or setting up a non-qualified deferred annuity.
Ask the experts a question
If I work for a company that does not offer a 401(k) plan, and my wife does not work, then how much income can we contribute to retirement each year, and in what forms?
The question is whether or not your employer has any type of pension plan in which you are a participant, not just a 401(k). Assuming there are no other plans, you may choose a fully-deductible Traditional IRA, a Roth IRA (which is not tax-deductible) or a non-deductible IRA, but only one.
You are limited to a contribution of $2,000 apiece, for you and your spouse, as long as your earnings are at least that much. In your case it is your earnings that are counted.
There are additional options for you if, for example, you have any self-employment earnings as with 1099 income. You may be able to do such things as a Simple IRA, SEP-IRA, Profit Sharing or Money Purchase plan. The rules are more complicated, but may be an option if you have any other sources of self-employment income.
Other options may include a non-qualified deferred annuity or even various types of life insurance plans. None of these are deductible, but will allow you to defer earnings and growth until retirement. 
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