Self-Employed and Small Business Owners: Are you Planning for Retirement?
July 31, 2018 by OSYB Staff

Sophia Bera, Gen Y Planning, shares a few options for those who are self-employed or small business owners to start retirement savings plans:
Individual Retirement Accounts (IRA) – opened and owned by you and you can choose either a traditional or Roth, note that there are differences between the two in terms of taxes and withdrawals
SEP-IRAs – can be opened by freelancers, contractors, self-employed individuals, or small business owners; similar to traditional IRAs in that you contribute pre-tax dollars and are taxed on withdrawals in retirement, contribution limits are significantly more in a SEP-IRA but be aware that limits can change
Solo 401(K) – can come in either traditional or Roth options.
Simple IRAs – small business owners with less than 100 employees, can set up SIMPLE-IRAs. “As the employer you must contribute to the account, whether or not the employee contributes as well, and can contribute either 2% of the employee’s compensation, or a dollar-for-dollar match of employee contributions up to 3% of their compensation.”
Health Savings Accounts (HSAs) – allows you to set aside money to spend on qualified medical expenses if you have a high deductible health care plan. “Many people use their HSA as a form of retirement account because once you turn 65, you can withdraw money for any reason without paying penalties. You will have to pay taxes on money withdrawn for non-medical reasons.”
As with any financial recommendations, please consult your professional financial consultant.
For details and more information: Retirement Planning if You’re Self-Employed or a Small Business Owner
Image Credit: Deposit Photos
Category: Small Business