No 401(k) at Your New Job? Here Are Your Options

Not every workplace offers a 401(k) plan, so don't sweat it if you don't have one.

Many people are leaving their jobs these days and jumping on better opportunities. You may have gotten a new job recently yourself -- one that offers higher pay and a more robust set of employer benefits.

But what if your new job doesn't offer a 401(k) plan for you to save for retirement? While it's common for large companies to offer a 401(k), for some smaller companies, these plans can be costly and cumbersome to administer. You may have to figure out retirement savings on your own.

If that's the situation you're in, don't sweat it. Thankfully, there are other options available that will help you build a retirement nest egg. Here are three to consider.

1. Open a traditional IRA

With a traditional IRA, you can get an immediate tax break on your contributions to your retirement plan, depending on your income. Your money then gets to grow on a tax-deferred basis until you take withdrawals from your account. That means that rather than be hit with a tax bill year after year when your account gains value, you only pay taxes once you begin to withdraw from your IRA.

Traditional IRA withdrawals are taxable in retirement, and there are penalties for accessing that money before age 59 1/2. However, there are a few exceptions, such as if you're using some of your money to purchase a first-time home.

This year, you can contribute up to $6,000 to a traditional IRA if you're under age 50. If you're 50 or older, that limit rises to $7,000.

2. Open a Roth IRA

With a Roth IRA, you don't get a tax break on your contributions. But any investment gains in your account are yours to enjoy tax free, and withdrawals are tax free as well.

The annual contribution limits for Roth IRAs are the same as traditional IRAs. And like traditional IRAs, penalties could come into play if you access your money before age 59 1/2 and don't qualify for an exception.

But one difference is that since Roth IRA funds don't go in tax free, you can technically withdraw your principal contributions before age 59 1/2 and avoid penalties. This means if you put $40,000 into a Roth IRA and your balance grows to $50,000 thanks to your investments, you can avoid early withdrawal penalties as long as you don't touch the $10,000 gains portion of your account.

Now you should also know there are income limits associated with Roth IRAs that don't apply to traditional IRAs. This year, you're barred from funding a Roth IRA if you're single earning over $144,000, or if you're married filing a joint tax return and earning over $214,000. But if you're interested in having a Roth IRA, you can get around this issue by funding a traditional IRA and converting it to a Roth afterward.

3. Invest in a traditional brokerage account

When you put money into a traditional brokerage account, you don't get to enjoy any tax breaks. But you're also not subject to any restrictions. You can invest as much as you want, and you can cash out your investments at any age without having to worry about penalties.

That's not a great thing, because if your goal is to save for retirement, you don't necessarily want the option to cash out your account early. On the other hand, sometimes, the need for money can arise without warning, so it's nice to have the option to withdraw funds that are yours without being penalized for it.

While a 401(k) can make saving for retirement easy, not every job offers one. If that's your situation, the good news is that you have plenty of other choices for building yourself a solid nest egg.