Comments on: Best Retirement Plans for Self-Employed People

By: Syed

Syed — Sat, 10 Jul 2010 19:32:12 +0000

I have two small business and both of them are incorporated in California and set up as S corp. One of the business I’m the only person and has no employee, but the other business has 5 employees which is operating at a loss. I want to set up a self employed retirement plan for myself for the first business only where I’m the only one involved. What are my choices for a self-employed retirement plan which offers me the maximum benefit and amount to be invested tax-deferred? Can I have such a plan for the business where I’m the only one without offering such plans to the other business with employees?

By: Car Negotiation Coach

Car Negotiation Coach — Thu, 03 Jun 2010 20:52:26 +0000

If you are self-employed and decide to go with a SEP (individual 401k) here’s a tip I learned the hard way when doing it through Vanguard (I assume the same applies at other institutions).

Make sure you select “employer” sponsored and not “employee” when setting up the account and transferring funds. It’s employer because you are employing yourself. If you choose “employee” by accident, they put a lower constraint on how much you can contribute annually and it’s a pain to get it converted (you’ll have to write a letter or two).

By: Khaleef @ KNS Financial

Khaleef @ KNS Financial — Thu, 03 Jun 2010 17:48:10 +0000

Good article. This provides a lot of helpful information and ideas for small business owners!

By: Neal

Neal — Wed, 02 Jun 2010 13:05:10 +0000

Thanks Nunzio….have you dealt w/many people in Linda’s situation?

By: Nunzio Bruno

Nunzio Bruno — Wed, 02 Jun 2010 12:42:10 +0000

Nice round up on the Individual 401k. Most folks don’t realize that it’s an actual option for their small business. You are spot on in planning for future income growth as well and it sounds like Linda will be in good hands.