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.
The articles were written by Robert D. Flach, a New Jersey area tax professional who also writes the blogs The Wandering Tax Pro. 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. 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.