Self employed can do a SEP IRA, however employers may offer 401(k) plans, like 401(k) & TSP which are called defined contribution plans & based on employment status, not income. You can contribute - directly from your pay before it's paid to you, & a whole lot more than IRA limits. Trad TSP/401(k)s allow immediate tax deferral on your contr & earnings; and MIGHT match what you put in. Roth 401(k)/TSP are after tax & if IRC rules met, earnings paid tax free after age 59.5. Devil is in details
Yes, please keep reading. Saving for retirement is great if you know a few distinctions in what is out there so you don't get frustrated. IRAs, Roth or Trad are not employer sponsored. Trad IRA, if you meet IRC req allow you a tax DEDUCTION at tax time in tax income. Anyone working can contribute to an IRA; AGIncome will det if u get DEDUCTION; earnings grow tax deferred. Roth IRA is based on AGIncome, everyone can't do Roth IRA; earning grow & are tax free if taken after age 59.5 .
Self employed can do a SEP IRA, however employers may offer 401(k) plans, like 401(k) & TSP which are called defined contribution plans & based on employment status, not income. You can contribute - directly from your pay before it's paid to you, & a whole lot more than IRA limits. Trad TSP/401(k)s allow immediate tax deferral on your contr & earnings; and MIGHT match what you put in. Roth 401(k)/TSP are after tax & if IRC rules met, earnings paid tax free after age 59.5. Devil is in details
materielgrrl 2 weeks ago
@materielgrrl thats for your contribution. sadly people just don't care as much for there retirement
1MasterTeacher 2 weeks ago
Yes, please keep reading. Saving for retirement is great if you know a few distinctions in what is out there so you don't get frustrated. IRAs, Roth or Trad are not employer sponsored. Trad IRA, if you meet IRC req allow you a tax DEDUCTION at tax time in tax income. Anyone working can contribute to an IRA; AGIncome will det if u get DEDUCTION; earnings grow tax deferred. Roth IRA is based on AGIncome, everyone can't do Roth IRA; earning grow & are tax free if taken after age 59.5 .
materielgrrl 2 weeks ago