1. SELF-EMPLOYED? MAKE A PLAN TO SAVE.
- Author
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BROOKS, ASHLYN
- Subjects
- *
INDIVIDUAL retirement accounts , *FINANCIAL planners , *CORPORATE profits , *401(K) plans , *PERSONAL finance , *EMPLOYEE savings plans , *SELF-employment - Abstract
This article from Kiplinger Personal Finance discusses retirement savings options for self-employed individuals. It highlights two main plans: the solo 401(k) and the Simplified Employee Pension (SEP) IRA. The solo 401(k) allows for both employee and employer contributions, with a maximum combined total of $76,500 in 2024. It also offers a Roth option for after-tax contributions. On the other hand, the SEP IRA allows business owners to set up retirement accounts for themselves and their employees, with a maximum contribution of 20% of net income or $69,000 in 2024. The SEP IRA is simpler to set up and maintain, but does not offer the option for elective deferrals or catch-up contributions. The article suggests that individuals consult with a certified financial planner to determine the best plan for their specific needs and goals. [Extracted from the article]
- Published
- 2024