Page 15 - EQ Mag-2019
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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
 $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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