Self-Employed

Retirement plans available when you work for yourself: Solo 401(k), SEP IRA, SIMPLE IRA, and defined benefit plans.

7 articles in this topic.

• Adding a Spouse to Your Solo 401(k)

  A spouse working in the business can nearly double Solo 401(k) capacity, to $140,000 or more. The W-2 versus K-1 test, and the plan-document fix.

• Solo 401(k) Mechanics for One-Person Businesses

  The Solo 401(k) is the highest-contribution plan for a one-person business. Two contribution sources, the $72,000 cap, Roth, loans, and the hiring rule.

• SIMPLE IRA Basics for Small Business Owners

  The SIMPLE IRA is a 401(k)-lite: $17,000 deferral, mandatory employer contribution, no testing. Who it fits, who it rules out, and the two-year trap.

• S-Corp vs Sole Prop: Impact on Retirement Savings

  The same $200,000 of profit funds very different retirement contributions by entity. The 25% W-2 rule, the 20% net-SE rule, and the break-even point.

• Defined Benefit Plans: When the Numbers Make Sense

  A traditional DB plan lets an owner-only business fund six-figure contributions toward a fixed retirement income. When it beats cash balance and a SEP.

• Cash Balance Plans for High-Earning Professionals

  A cash balance plan can let a 55-year-old physician or partner contribute $200,000 a year on top of a 401(k), and when the cost is actually justified.

• Solo 401(k) vs. SEP IRA: Which Should the Self-Employed Choose?

  Solo 401(k) versus SEP IRA head to head: contribution limits, Roth availability, loans, paperwork, and the income level where each one wins.