Retirement Plan Options for the Self-Employed. There are five main choices for the self-employed or small-business owners: an IRA (traditional or Roth), a Solo 401(k), a SEP IRA, a SIMPLE IRA or a defined benefit plan. Many or all of the products featured here are from our partners who compensate us.
Also, can you retire as an independent contractor?
Absolutely. Whether you‘re a freelancer, independent contractor or budding entrepreneur, you have access to an expanded range of retirement plans, including both an Individual 401(k) and a SEP IRA.
Accordingly, can a 1099 employee open a SEP IRA?
SEP IRA. The simplified employee pension plan allows 1099 workers to contribute up to 25 percent of their net earnings from self-employment or $53,000, whichever is lower, in 2016. … Like a traditional IRA, you are allowed to contribute to a SEP IRA up to April 15 and still claim the contributions on the prior tax year.