5 Best Retirement Plans For Self Employed Individuals
1. Simplified Employee Pensions- These retirement plans for self employed individuals are simple to utilize, and are also referred to as a SEP plan or SEP IRA. This plan can also be ideal with retirement plans for small business owners and employees as well. It is similar to a traditional IRA plan, but the contribution limits in place are higher for the SEP plan.
2. Keogh Plan- These retirement plans for self employed individuals are found in two types, a plan with defined benefits or a plan that involves profit sharing. Both account types offer numerous benefits for self employed retirement plans, and are set up to operate similar to a corporate retirement plans. This plan type will involve more time to oversee and more forms must be completed, and there are withdrawal penalties in some cases.
3. Solo 401K Plan- Solo 401k plans are also called individual 401K plans, and these can be ideal for self employed individuals, freelance workers, and independent contractors. This retirement plan allows you to make large contributions in some years but make no contributions in other years. The benefits also include the possibility of a loan against your account balance.
4. Roth IRA- Roth IRAs can be fantastic retirement plans for self employed people. This type of retirement account is unusual in the fact that your deductions are made after being taxed, and the benefit is that you receive the money tax free once you reach retirement age. The contribution limits in place are usually the same as most 401k contribution limits.
5. SIMPLE IRA- Simple IRAs are retirement plans for self employed and small business, and these plans have an employer match element. The paperwork needed for this type of account does not require much time, and these accounts are popular for many who are working on retirement planning.