Oh my gosh! Ive quit my job and started my own business how am I going to save for retirement?
Retirement options available for self-employed individuals include: Solo 401Ks SEP IRAs This can be done in conjunction with a 401K from the spouses employer. There are earned income limitations that must be contended with when investing in an IRA. Traditional and Roth IRAs have contribution limits of $4,000 (or $4,500 if over 50 years old). However, 401Ks have contribution limits of $15,000 (or $20,000 if over 50 years old). You must plan your retirement with the employed spouses options and the self-employed spouses options. If you are self employed you do not receive a paycheck, so you would not be able to contribute to a 401K. You can incorporate in order to be able to be treated as an employee. You can also set up a SEP IRA to save for retirement. The great thing about SEP plans is that you have until the following year to create the plan and contribute (must be done by the due date of the return or the extended due date) to the plan.
