Dreaming about ditching the 9-to-5 and starting your own entrepreneurship journey is super exciting, but not everyone thinks about their retirement savings from the start. It can be overwhelming in the beginning but it will become much easier over time. So don’t you worry! Start planning for retirement today and future you will thank you later !
KEY TAKEAWAYS
The following retirement plans are specifically tailored for self-employed individuals, offering optimal choices due to their high contribution limits.
1. SEP IRA (Simplified Employee Pansion IRA ) :
- Up to $61,000 per year
- Tax deductible
2. Savings Incentive Match Plan For Employees IRA (SIMPLE IRA)
- Up to $16,000 per year
- Tax deductible
3. Solo 401 (k) / Individual 401(k)
- Up to $69,000 per year
- Tax deductible
- Has a dual contribution capability ( Allows contributions from individual + business )
4. Traditional / Roth IRA
- Lower contribution limits, capped at $7,000 per year
