TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Solved

401k contribution outside of employer

Forum|Forum|1 year ago
February 17, 2025
1 reply
0 views

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!

Not A Product Question

Best answer by MAK70

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.

MAK70Answer

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.