One of the most important things to do when you are self-employed is to set up a retirement plan. Many people take it for granted that a retirement plan is easy to set up because they have the guidance of company policy to help them choose a suitable plan. The rules are slightly different when you are self-employed; traditional retirement plans are not always viable.
Depending on a number of factors such as how much disposable income you have, the number of employees working for you, and the number of years before retirement there are different plans that qualify as the retirement planner near me for self-employed individuals. Choosing the retirement planner near me for self-employed individuals is especially important if you have just made the transition to self-employment.
Simple IRA, the Retirement planner near me for Self Employed
The simple IRA is the retirement planner near me for self-employed individuals who freelance or work in the consulting field. When making contributions to a simple IRA there is no limit on the percentage of income that can be contributed to the retirement plan. Though you should be aware that the dollar limit for contributions in this plan is lower than other plans. This can be an expensive retirement plan for small businesses with many employees.
Keogh is Among the Retirement planner near me for Self Employed
Small businesses often face tough competition keeping talented employees with the company. One of the best retirement savings plan to keep employees on board is the Keogh savings plan. The money that an employee receives grows the longer they stay with the company. This is a great incentive plan.
You can make this the best retirement savings plan for your self-employed company by either offering different percentages of compensation each year or a fixed percentage of income. However this can be an expensive plan and it does require additional paperwork and administration that can cancel out its benefits.
SEP IRA One of the Retirement planner near me For Self Employed
If your business has a high turnover of employees who are paid a low income then this might be the best retirement savings plan for your self-employed company. The attractions to this type of retirement savings plan are the low fees and it is easier than most retirement plans to set up.
Another factor that makes this one of the best retirement savings plan for self-employed individuals are the higher contribution limits. To calculate your contribution limit simply minus half your self-employment tax from your income. All employees receive the same base contribution as employers with this plan.