Now more than ever, the federal government is urging everyone to take their retirement plans into their own hands with tax-advantaged retirement accounts. By creating a series of accounts such as the 401K and IRA, the government is trying to ensure that people are able to find something that will fit their individual needs.
Here are 3 retirement accounts for both traditionally employed and self-employed individuals. There are several others, but these 3 will help you get going in the right direction:
- 401K by employer – If this is offered by your employer, then take it! In many cases, they will match what you contribute which is like getting free money.
- 401K for sole proprietor – If you own your own business, you may set up your own 401K plan and contribute both as the employer and employee.
- SEP IRA – This kind of account is ideal for those who are self-employed and is easier to set up than a self-employed 401K plan.