Before I finish my taxes, I’ll have to decide how I want to put some of my self-employment income away for retirement. I didn’t know there were so many options! In addition to the usual Traditional and Roth IRAs, I could also do use any of the following:
- Simplified Employee Pension IRA (SEP-IRA)
- Savings Incentive Match Plan for Employees IRA (SIMPLE IRA)
- Keogh Profit-sharing Plan
- Individual, or Solo 401k’s
- Solo Roth 401k’s
I’m definitely going to explore all these options soon, but due to their deadlines the only one that I can actually use for 2005 income is the SEP-IRA, which allows me to open and fund it as late as the extended deadline for tax returns. Gotta love easy decisions.
By Jonathan Ping | Retirement | 2/12/06, 7:35pm