5 Best Retirement Plans For Self-Employed
Anyone who is their own boss should know the 5 best retirement plans for the self-employed. Self-employed people may enjoy the freedom of running their own business, but they may also think that they are missing out on some of the best retirement plans. There are retirement plans available for self-employed people, however, and some of them are similar to what a company may offer to their own employees.
- One option of available best retirement plans is a SEP (Simplified Employee Pension) IRA: This type of Individual Retirement Account investment works very much like regular one, with only a few differences. These include being able to invest up to $49,000, but being unable to use it as collateral for a loan.
- Simple IRA: A self-employed person might want to consider this as one choice in best retirement plans as it is easily managed. However, one is limited in how much he can contribute in a year, and again, they cannot be used as loan collateral.
- Individual 401k: Long considered one of the best retirement plans for those who work for other people, this plan is also available to self-employed people. Individual 401ki plans can be used when making loans.
- Roth 401k: This can definitely be one of the best retirement plans. Although contributions are not tax-deductible, withdrawals made after one turns 59.5 years old are tax-free.
- Keogh Plans: These are considered to be almost the same as any pension or profit sharing plan found in any organization or company, making them a good choice when deciding on the best retirement plans for the self-employed..