If you’re a freelancer, an independent contractor, a sole proprietor, an independent consultant, or self-employed in any other way, saving for retirement plans can be a challenge. Since you don’t have an employer to motivate you, or match any personal contributions you make to a company-sponsored retirement savings plan, you’ll need to step up to the plate and do it all yourself. Fortunately, if you have the will (and the money to save), there is a way.
Here are some of the more popular retirement savings plans available to you, and the issues to consider when deciding which one to establish.
Simplified Employee Pension (SEP) • This plan is also commonly called a SEP-IRA. And just like the name implies, it is relatively easy to establish and maintain. Because of its high contribution limits, it is quite popular among, and most appropriate for, business owners with no employees.