If you are a sole proprietor or a small business owner with no employees other than your spouse, you are eligible to establish a solo 401(k). With the solo 401(k), you can make two types of contributions, salary deferral and profit sharing, allowing you to benefit from higher contributions compared to other types of retirement …
Source: IRS.gov A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan. SIMPLE IRA plans can provide a significant source of income at …
Source: IRS.gov A SEP is a simplified employee pension plan. A SEP plan provides employers with a simplified method to make contributions toward their employees’ retirement and to their own retirement. Contributions are made directly to an Individual Retirement Account or Annuity (IRA) set up for each employee (a SEP-IRA). Simplified Employee Pension (SEP) plans …
A Roth IRA (individual retirement account) is similar to a traditional retirement account. Instead of investing with pre-tax dollars, a Roth uses after-tax dollars. Similar to traditional IRA accounts, a Roth IRA can be opened at a local bank or other financial institution. In order to take full advantage of nontraditional investments like private equity …
A traditional IRA (individual retirement account) is an account that is used to save pre-tax dollars for use in retirement. An individual can open an account at several financial institutions; however, to take full advantage of nontraditional investment options, a self-directed IRA must be established. A true self-directed account is different from one that is …
