WorkHappy is another cool site that I stumbled upon, and this post about retirement options is good since some of my clients are look for a way to put aside money for retirement which is great for reducing taxable income.
- Simplified Employee Pension IRA (SEP-IRA)
You qualify if you do a Schedule C or F or guaranteed payments from a partnership. You can set one up with the same folks who do ROTH or traditional IRAs, and you can contribute 20% of your net earnings minus self employment tax or $45,000 (for 2007), whichever is less.
- The Solo 401K
You qualify only if you have no employees. Finding a broker that offers it might be tricky (try Fidelity or T. Rowe Price), but you can contribute up to $15,500 plus 20% of your business income, with a maximum contribution of $45,000 in 2007.
- The Simple IRA – this one is for your employees too.
You can offer it if you have less than 100 employees and you don’t have another retirement plan (403(b) or SEP). You can contribute up to $21K for yourself.
- The Keogh
This one is a mess, good grief. But – you can put in up to $180,000 if you structure it right.
And finally – a nice matrix to help you compare, sort it all out and find your best option.