Exploring the Top Retirement Saving Options for Self-Employed Individuals
Sunday, 17 March 2024, 11:00
Retirement Saving Options for Self-Employed Individuals
If you're self-employed, planning for retirement is crucial. Learn about the advantages of SIMPLE IRAs, SEP IRAs, Solo 401(k)s, and traditional or Roth IRAs for securing your financial future.
SIMPLE IRAs
- Employee Contributions: Up to $16,000 or 100% of earnings
- Employer Matching: Dollar for dollar, up to 3% of self-employment income
SEP IRA
- Contribution Limit: 25% of income or $69,000
- Differences: Contributions considered employer-funded; higher contribution limit than SIMPLE IRA
Solo 401(k)
- Contribution: Up to $69,000, divided between employee and employer contributions
- Advantages: Highest contribution limit for many, catch-up contributions for 50+
There are also traditional and Roth IRAs available for self-employed individuals, offering flexibility in savings and tax benefits. Choose the right account based on your retirement goals and preferences.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.