I just took a job that I like, and the line in the offer letter turns out to be misleading (I think through inexperience, not manipulation).
This is it:
You will eligible to receive a 401(k) match of 6 % of base salary perannum
This led me to believe there is an actual 401(k) offered, but there isn't. When I clarified the point (after taking the job). They say:
We do not offer a 401(k). You have to set up your own retirementaccount but we will give you 6% gross (taxes then will be withheld,you will receive a net amount) of your earned salary at the end of theyear.
I already have a Roth and Trad IRA, and I wonder if this "401(k) contribution" cash amount can only be used to contribute to those? Or because I'm employed is there another type of personal taxed-advantaged retirement account available to me?
This would be ideal, because in my understanding, the more tax-advantaged savings accounts, the better.
Another interesting consideration is that the 6% matching will be more than my individual limit for my IRAs (would prefer not to say how much). Would this amount of "cash" actually exceed the amount my employer would be able to contribute to a 401(k) (if they had one).
Trying to figure out if this arrangement is actually better or worse than having a 401(k) offered.