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       3 popular retirement plans

                              for the self-employed

     By: Christian F. Cartwright

        f you're self-employed, your primary focus,           contribute as much as 25 percent of your net self-
        especially in your entrepreneurial effort's early     employment earnings up to annual maximum
     Iyears, likely is to just make sure your business        amounts that are adjusted each year for inflation.
     survives. But once you're on stable business footing,
     it's wise to look into tax-deferred retirement plan      2. Savings Incentive Match Plan for Employees (SIMPLE)
     options for your small business.                         IRA: A SIMPLE plan provides you and your employees
                                                              with a relatively easy way to make retirement
     1. Simplified Employee Pension (SEP): One reason that     contributions. A SIMPLE IRA has two sources of
     SEP plans are popular is that they are easy to set up    funding. Employees may choose to make salary
     and maintain. You can establish a SEP with a simple      reduction contributions to plan instead of receiving
                                                              the amounts as part of their regular compensation.
                                                              In addition, as the boss, you will contribute either
                                                              matching or non-elective amounts to the accounts
                                                              of eligible employees.  As a self-employed individual,
                                                              you can defer all of your net self-employment
                                                              earnings or $12,500, whichever is less. The limit is
                                                              the same for both 2017 and 2018 tax years.
                                                              If you're 50 or older, you can defer an additional
                                                                                                                                  CURRENCY OF
                                                              $3,000 for 2017.

                                                              3. 401(k) plan: There are more administrative
                                                              requirements with a one-participant 401(k) plan,
                                                              but that doesn't dissuade many self-employed
                                                              people from opening this type of account. The
                                                              reason for dealing with more hassles? An owner-only                 THE FUTURE?
                                                              401(k) often allows for a larger contribution than a
                                                              SEP or SIMPLE IRA. The self-employed retirement
                                                              plan works essentially like traditional workplace
                                                              defined contribution plan. However, a single-                        Some argue it’s bitcoin
                                                              participant 401(k) — which also is commonly
     one-page form, Form 5305-SEP, Simplified Employee         referred to as a solo 401(k), solo-k or uni-k plan —
     Pension - Individual Retirement Accounts                 covers a business owner with no employees, or the
     Contribution Agreement. Or, if you prefer, you can       owner and his or her spouse who works for the
     open a SEP-IRA through a mutual fund, bank or            business.
     other financial institution. A SEP-IRA operates
     essentially like a traditional IRA for tax purposes.
     Once created, the administrative responsibilities are
     minimal. There are no employer tax filings. You can
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