I already commented onthis post in Monkey Mama's blog but I'd love to hear your thoughts on the subject. Am I the only shmoe who has worked for small/family-owned type companies with absolutely no 401(k) plan - stuck with having to put away a measly $4,000 maximum a year toward retirement?
Does this seem wrong to anyone else out there? I am already penalized because I work for a small company, probably struggling to make a decent wage and on top of that, the government tells me that I can not save more than $4000/year in the only retirement vehicle available to me!!! This steams me.
I can *almost* understand making a cap on IRA contributions if you already have a 401(k), but to tell people whose only retirement account is a Roth IRA that they're gonna have to suck it up and live on those $4,000/yr contributions come retirement age, well what might be the incentive to work for a small business at all...unless you happen to own it (then you can open a SIMPLE IRA or a SEP IRA and save more). But, if you are the jackass working for him you are completely screwed.
...or am I missing something? ???