Roth Iras And Spousal Deductible Iras – Retirement Options For The Self Employed Worker

There are tons of benefits associated with owning your own business or being a self-employed individual. For one thing, you can control your hours, the projects you want to handle, and the clients you want to work with. However, many workers can’t go down this relatively unbeaten path because they don’t know how to replace the retirement savings their traditional 401Ks and pensions are able to provide. For the self-employed worker who’s still some years away from retiring, or the older employee who wants to embark on an encore career away from the rat race, here are a couple of options that can enable you to save up for retirement:

Roth IRAs aren’t just for the employee – as a business owner, freelancer, or any other type of self-employed individual, you may be able to access this retirement savings vehicle. The limits are the same for the self-employed worker as the nine-to-five employee – it’s up to $ 5,000 yearly for singles, and double that amount for married workers. If you plan your tax strategies well enough, you can grow your assets with this kind of IRA – contributions may be non-deductible, but you can get tax-free income. Phaseout limits for Roth IRAs are set at a range of $ 101,000 to $ 116,000 for single workers and $ 159,000 to $ 169,000 for married individuals filing jointly.

As a married and self-employed worker, you can also use the Spousal Deductible IRA to help build your nest egg despite the lack of a traditional IRA usually used by employees. Much like the Roth IRA, this kind of IRA has set contribution limits at a maximum of $ 5,000 yearly, and phaseout limits same as the Roth IRA’s for joint filers. However, this retirement savings plan is a bit more difficult to qualify for. First up, if your spouse has a company-sponsored retirement plan and you don’t, your limits are at $ 159,000 to $ 169,000. If you’ve already set up another retirement savings plan for your business (like a 401K or a SEP), your phaseout limit can be anywhere from $ 85,000 to $ 105,000.

Having trouble attaining retirement security as a self-employed worker? Try out any of these plans that can help you save up for your golden years. The good thing is that you won’t be limited to just one – if you have the financial capability and are able to plan well, you can use more than one plan to help you build your nest egg.

Carina Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group specializes in finding ways for self-employed seniors to attain retirement security and add to their retirement plan benefits. For more information about how Puritan Financial Group can help you, please visit our website at http://ift.tt/1LOJx9I

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