These five, plus one self-employed retirement plans may work for you:
1.
2.
3.
4.
5.
1. Traditional or Roth IRA:
Best for: Those just starting out. If you’re leaving a job to start a business, you can also roll your old 401(k) into an IRA.
IRA contribution limit: $7,000 in 2024 ($8,000 if age 50 or older).
Tax advantage: Tax deduction on contributions to a traditional IRA; no immediate deduction for Roth IRA, but withdrawals in retirement are tax-free.
Employee element: None. These are individual plans. If you have employees, they can set up and contribute to their own IRAs.
Some Important details:
An IRA is probably the easiest way for self-employed people to start saving for retirement. There are no special filing requirements, and you can use it whether you have employees or not. The toughest part might be deciding which type of IRA to open: Roth IRAs also don't have required minimum distributions, and Roth IRAs
can be transferred to your heirs, tax-free.