I love having my own business. While it is a lot of work, it is also very rewarding. I need a creative outlet in my life, and my business gives that to me. I also love having another income source. You never know what life will throw at you, and diversifying your income streams helps insure against a sudden loss of income.
Another benefit of having my own business is being able to invest money in a self-employed retirement plan. There are several types of plans available to small business owners and employees, and this week I will run articles discussing the major self-employed retirement plans in more detail.
Compare brokerages with the Mint.com brokerage tool to find the right brokerage for your small business retirement plan account.
The articles were written by Robert D. Flach, a New Jersey area tax professional who also writes the blogs The Wandering Tax Pro, and the New Jersey Tax Practice Blog. Robert brings over 35 years of tax experience to the table and does a better job than I could at explaining these self-employed retirement plans.
This series will cover the types of self-employed retirement plans, who is eligible for these plans, the contribution limits, and deadlines for setting up the plan and contributing to the plan.
Types of Self-Employed Retirement accounts
The main types of self employed retirement accounts are:
Where to Open a Self-Employed Retirement Plan
There are many great brokerage services that offer self-employed and small business retirement plans. I recommend examining your needs and comparing your options before making the decision. A great place to start is the Mint.com brokerage comparison tool, which compares the average savings from various brokerages when compared to the national averages. Click this link to visit the Mint.com brokerage tool.
Research your self-employed retirement plan options
As always, research your options before opening a retirement account. There are several rules regarding eligibility and contribution limits and these self-employed retirement plans may affect your taxes significantly. I’ve done my research, and later this week I will share which of these self-employed retirement plans I chose to open, and why.