Money earned from small businesses or self-employment can be saved for retirement. Small business owners, entrepreneurs, independent companies, free-lancers, bloggers, and Huggers can earn money even, from small sums to large, through self-employment. After expenses are paid, the net income from self-employment can be used as an initial income source, just a little pocket money, or to supplement your pension income.
Don’t have a pension plan? Your retirement savings just a little short? Business income may be used to fund a retirement plan of your. There are many options for retirement programs for the self-employed and small businesses. They all have their drawbacks and advantages. Some defined contribution plans are low cost and easy to create and administer. The main element is to find the right plan for you and your business.
Keogh and defined benefit programs, while potential options for small business owners, people that have high incomes particularly, are more complex, more costly to create and keep maintaining, and will not be discussed here. Do you also have employment as a worker at a business using its own pension plan? After expenses, is your net income from your business large or a small? Are you experiencing employees or are you a single proprietor? Do you want the plan to add to your employees? Are you over age 50 and want to take advantage of the catch-up option? 6,500 if over age 50) for 2018. A contribution can be produced for an unemployed spouse if one partner has … Read the rest