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Re:Share of U.S. workers holding multiple jobs is rising by OldHand2018 on Thursday February 18, 2021 @04:47PM (#26186127)
There’s been only garbage replies to your question, which is really unfortunate. In reality, we aren’t that far away from being able to do this.

If you are a 1099/gig worker and file your taxes with a schedule C, you’re almost certainly eligible for a SEP-IRA (1). This is way better than a 401k; you can contribute up to 25% of your income (max $57k per year) pretax with all the same investment options as any other retirement plan. Sure, it could be made easier to setup, but it’s been around forever and works. What we need to do is say that if you have an employer who does not provide a [baseline] retirement plan, you are eligible for the SEP-IRA on all income from that employer.

The Covid-19 relief legislation established unemployment assistance for 1099/gig workers with federal backing and administered by the states. This should be kept around, improved, and made sustainable (add a line to the Schedule SE for paying the same kind of unemployment taxes that businesses pay on behalf of employees).

Obamacare allowed for association-based health plans and the Trump administration approved one of them. I don’t recall the details or the current status, but that’s a start in the right direction. Employers pay a lot of money for health plans and their size allows them to negotiate better deals. We need that leverage outside of employers and plenty of other improvements, but at least we have the basics.

This is achievable!

(1) https://www.irs.gov/retirement-plans/retirement-plans-faqs-r...

Re:Share of U.S. workers holding multiple jobs is rising by pmiller2 on Thursday February 18, 2021 @05:14PM (#26186454)
Even just eliminating the whole 401(k) shit show by converting them to IRAs and raising the contribution limits for IRAs to ~$25k (roughly the sum total of what a W2 employee can contribute to an IRA + 401(k) combined) would solve the retirement account problem fairly efficiently. I'd be willing to bet that could be accomplished with approximately a page or two of legislation.

Edit: The problem is "lack of political will," i.e.. lack of people or corporations willing to hire lobbyists to make it happen.

Edit 2: While we're at it, why not just let everybody make Roth contributions, at least up to the amount one could contribute to an IRA? Let's just get rid of the whole "backdoor Roth" shenanigans and let people contribute directly.

Re:Share of U.S. workers holding multiple jobs is rising by ryandrake on Thursday February 18, 2021 @11:09PM (#26189576)
Just a nit pick: The limit on total employer and employee contributions to a 401(k) is $58,000 in 2021, which includes the $19,500 elective deferral, employer matches, and post-tax contributions. If the "401(k) shit show" was eliminated, I'd hope it would be replaced with similar contribution limits.

To your point about backdoor Roth shenanigans, they aren't really shenanigans, they are legit and IRS-sanctioned. Shenanigans kind of implies you're doing something morally questionable.

Re:Share of U.S. workers holding multiple jobs is rising by pmiller2 on Friday February 19, 2021 @09:04AM (#26193239)
Fair point. Raising the total contribution limit from all sources to $58k + $6k, without differentiating between individual and other contributions would totally make sense. It's an implementation detail, but a significant one, to be sure. :-)
Re:Share of U.S. workers holding multiple jobs is rising by ghaff on Thursday February 18, 2021 @06:01PM (#26187057)
There's been the virtual elimination of new private sector defined benefit pensions. Which isn't even entirely a bad thing. Leaving aside issues of benefits being cut in some cases, it was always a system that was designed around people staying decade+ in the same job. And between that and SS in the US, people didn't have much choice for a huge chunk of their savings.

The problems is the various defined contribution schemes were never introduced in a systematic way as you say. 401(k)'s history is particularly unplanned.

Re:Share of U.S. workers holding multiple jobs is rising by jschwartzi on Thursday February 18, 2021 @05:17PM (#26186496)
The other component is decoupling health care and dental insurance from employment. Because that's a far bigger problem than retirement. A lot of people lost their jobs last year and suddenly had to pay full price on their insurance to keep going to their doctor.

The whole insurance system in the US is best described as a real-life re-enactment of The Trial by Franz Kafka.

Re:Share of U.S. workers holding multiple jobs is rising by ghaff on Thursday February 18, 2021 @05:31PM (#26186692)
Dental insurance isn't really insurance. It's a benefit that exists mostly because it's tax advantaged. [1] Health insurance is, of course, really insurance. With Obamacare the biggest issue is probably that it's really expensive to pay for a good insurance plan (or even a not so good insurance plan) on your own. Though, honestly, not so cheap even with employer participation.

[1] By not really insurance, I mean that most people with it (especially older people) may consider it a nice perk but it doesn't really protect them from out-of-pockets they can't afford.

Re:Share of U.S. workers holding multiple jobs is rising by dillondoyle on Thursday February 18, 2021 @04:59PM (#26186260)
What is the average yearly take home of people working multiple part-time jobs though?

Most people live bill to bill, probably more-so those less advantaged.

How many would really be able and or willing to save like that?

Isn't the more simple answer getting rid of this crazy system and profit incentives by nationalizing healthcare?

Re:Share of U.S. workers holding multiple jobs is rising by OldHand2018 on Thursday February 18, 2021 @05:07PM (#26186347)
There is nothing simple. You just have to accept this. It’s really appealing to create the perfect system, but it is just not going to happen. I’m sorry. It’s not going to happen.
Re:Share of U.S. workers holding multiple jobs is rising by bumby on Thursday February 18, 2021 @06:57PM (#26187574)
For every complex problem there is an answer that is clear, simple and wrong.

H. L. Mencken

Re:Share of U.S. workers holding multiple jobs is rising by lotsofpulp on Thursday February 18, 2021 @06:14PM (#26187170)
> If you are a 1099/gig worker and file your taxes with a schedule C, you’re almost certainly eligible for a SEP-IRA (1). This is way better than a 401k

Not if your spouse works for an employer that offers a 401k.

Re:Share of U.S. workers holding multiple jobs is rising by sokoloff on Thursday February 18, 2021 @06:30PM (#26187319)
> Not if your spouse works for an employer that offers a 401k.

Do you have a citation for this?

I'll offer a citation from the IRS that strongly suggests (though does not 100% prove) this is not the case:

"Can I set up a SEP for my self-employment income if I participate in my employer's retirement plan?

Yes, you can set up a SEP for your self-employed business even if you participate in your employer's retirement plan at a second job."

That suggests that you can contribute to a SEP even if you yourself are participating in a 401K, let alone if your spouse is merely offered one.

[0] https://www.irs.gov/retirement-plans/retirement-plans-faqs-r...

Re:Share of U.S. workers holding multiple jobs is rising by lotsofpulp on Thursday February 18, 2021 @06:45PM (#26187464)
You are correct, I was misinformed.

https://www.irs.gov/publications/p560#en_US_2019_publink1000...

It seems only people who are employed by employers that don't offer 401k get screwed if the spouse does have a 401k and you're over certain incomes:

https://www.irs.gov/publications/p590a