Self-Employed Retirement Plans

Self-Employed Retirement Plans allow self-employed individuals and small-business owners to save for retirement.  

The main self employed retirement plans are:

1. Simplified Employee Pension (SEP IRA),
2. Individual 401(k)—sometimes called a solo 401(k) or a self-employed 401(k).
3. Savings Incentive Match Plan for Employees (SIMPLE IRA) 

These plans can be opened at any online brokerage, I'm using the companies below as an example, so comparisons can be made. They all carry the same products.

• SEP-IRA 
• SEP IRA - Simplified Employee Pension Plan - Fidelity
• Solo 401k - (commonly called an Individual 401k)
• Individual 401(k) Retirement Plan - T. Rowe Price
• SIMPLE IRA
• Simple IRA | Establish Your Retirement Plan | Charles Schwab

A sole proprietor who makes $40,000 can save $8,000 in a SEP-IRA, but over $21,000 in a solo 401(k). The SIMPLE IRA varies and is for the employer and up to 100 employees.

An educational video below on the Solo 401k, again not endorsing the company, just use the information for educational purposes and do your own research.

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