Hi! I’m wondering if anyone has advice on this unique problem I’ve run into.
Context: I work full-time as a freelancer in tech and while sometimes I get hired 1099 through my LLC, many higher paying full-time contracts will be facilitated by a staffing agency who has me on a W2. These staffing agencies are now starting to automatically offer and enroll me in retirement plans…
My CPA has told me that if I am offered one of these plans I HAVE to utilize it in order to take a deduction for retirement in my tax return. IE I can still contribute to my own IRA $7500 but it’s not tax deductible.
My problem: many of these contracts are only 1-3 months, so if I don’t frontload thousands of dollars, I lose the opportunity to get any tax deduction for retirement as soon as they enroll me.
What’s the solution here? Anyone experience something similar?
I’d love to contribute to my retirement over the course of the year, but these temp contracts have really thrown a wrench in how to do it…