Are you self-employed, or a solopreneur? If so, you need to plan for your own retirement because no one will to do it for you. There are a number of retirement plan options available to you. Here are several to consider, per the IRS:
SIMPLE IRA: Contributions of net earnings can include salary reductions and 2% fixed contribution or a 3% matching contribution. Plan contribution maximum for salary deductions in 2013 is $12,000, plus $2,500 if you are 50 or over.
SEP: Contribute up to 25% of your net self-employment earnings. Plan maximum for 2013 is $51,000.
Solo 401(k): You can make salary deferrals of up to $17,500 in 2013, plus $5,500 in catch-up contributions if you are 50 or over. You may also contribute an additional 25% of net earnings, up to $51,000, including salary deferrals.
The plans mentioned above are qualified plans, meaning they receive favorable tax treatment by the IRS, provided the plans and contributions fit within the guidelines. These are not your only options, however, if you are self-employed. If you’d like more information about retirement planning options, contact us. We’d be happy to discuss them with you.
To your wealth and success,
Joe Maas, CFA, AVA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance