While there are tons of benefits of working from home, there is still the occasional con – especially where you have to be responsible for figuring out your retirement plan. There is not one already in place for your earnings to automatically be placed into. There are still some good options, though. All you have to do is decide the best retirement account for self employed.
The earlier you get started, the easier it will be to learn and the more you’ll be able to save. Remember to stay disciple and put money into the account when you are supposed to. Eventually, it may get to the point when you want to invest with your self-employed retirement funds. This investment is something to consider in the future after you get started with your savings.
A Solo 401(k) plan comes with all of the advantages of a regular company 401 (k) plan, with even more perks. First, select a traditional or Roth 401 (k) account setup. Would it be better for you to contribute after-tax money or before-tax money to the account? As for investments, you can invest in most asset classes. You’ll need to make sure you choose a broker that offers the best retirement account for self employed options.
Solo 401 (k) plans are better for self-employed individuals with low-to-average earnings. However, if you have high earnings, you might want to take a step up and opt for either a SEP IRA plan or a SIMPLE IRA Plan. The latter is ideal for the self-employed who have a few employees helping them or small businesses who want to provide affordable savings/retirement plans.
Best Retirement Account for Self Employed as IRA
The SEP-IRA plan is for self-employed persons who earn a lot every year. However, there are still options available even if you do have employees. It allows the employer to contribute to employees, including the employer himself or herself. A SEP IRA plan has no ROTH option.
While the most popular, these three options are not the only ones. The best retirement account for self employed workers might be a little less defined. It depends on how much experience you have being self-employed, running a business, and how much you are comfortable contributing right now and soon.
To learn more about defined plans, more flexible plans, investment opportunities, and other information to help you find the best retirement account for self employed, look into Rocket Dollar. They offer an extensive knowledge base and help you get started with a self-directed account if you think you would be interested.