How to save for retirement when self-employed

[Anonymous]

I own my own consulting business and would like to contribute to retirement. What is the best option? KEOGH? IRA?

[Anonymous]

I opened a SEP-IRA and contribute up to 25% of my earning annually.

[Anonymous]

My DH has a SEP IRA as well. He's able to contribute about $45k/year. We've talked to our accountant about a plan that would allow about $100k a year but haven't done that yet because it's less flexible than the SEP.

[Anonymous]

SEP-IRA. Max that shit out.

[Anonymous]

Also you say you've got a business. Do you have employees or partners? I do a 401k and a profit share and we set aside about $50k a year.

[Anonymous]

OP here. Thanks. I don't have employees or partners - I work for myself. I will definitely look into the SEP-IRA. Thanks!

[Anonymous]

You can do an individual 401k. There is a little bit of additional paperwork, but it has some additional benefits over the sep-ira, like income deferral that is not tied to the percentage of business profits. If your net business profits are less than 260k the individual 401k is a better plan. If you make more than that it won't matter, because you will be capped at the same 51k for either one. Easy to open through fidelity.

[Anonymous]

Set up a small LLC and do a combined 401k/profit sharing. I've been putting in more than $40k/year in the combination of those two (in one retirement account) for 11+ years. Add that to my IRA (not deductible) and I have a very nice retirement balance, esp. when added to my pre-self employed years working. Good luck!

[Anonymous]

SEP

[Anonymous]

Roth

[Anonymous]

SEP in your circumstances. If you make a huge amount, add a deferred compensation plan to it.

[Anonymous]

Agree with SEP-IRA. Keeps it as simple as possible. Works for me.