Being self-employed doesn’t mean you can’t have a sturdy, dependable plan for retirement. You took your career and business growth — your financial future — into your own hands and you can do the same with your retirement. There are many retired options for the self-employed, whether or not they have employees. Do your research and choose a path is right for you and that will secure your future and that of your loved ones.
If you make $100,000 or more, you may consider investing into a private pension plan. To use this plan, you have to be self-employed and have no employees. Normally, you can borrow from this kind of plan, but there may be fees associated with it. Once it reaches a certain amount of money you will need to file special taxes.
Another option is it a SEP IRA. With this kind of retirement plan, you can have employees. If you choose this option and do employ others, you will need to contribute for them as well. Loans are not allowed.
A simple IRA can be set up for self-employed individuals with or without employees. You will have to invest a percentage for your employees if you have them. You cannot borrow from this plan. Withdrawals may cause penalties, and you may owe an annual fee.
It’s important to plan for your future. Every kind of retirement plan, just like every individual business, will have its own set of rules, benefits and risks, so be sure to research your options. If you’re not sure what to choose, consult with a professional. Your future, and that of your family, is too important to risk.