Several retirement plan options are available to entrepreneurs, each with its own benefits and limitations:
Solo 401(k): Ideal for self-employed individuals with no employees. Allows for high contribution limits and includes both employee and employer contributions. SEP IRA: Simplified Employee Pension Individual Retirement Account is suitable for businesses with few or no employees. Easier to administer and allows for significant contributions. SIMPLE IRA: Savings Incentive Match Plan for Employees is designed for small businesses with up to 100 employees. It involves mandatory employer matching contributions. Traditional and Roth IRAs: These are individual retirement accounts that offer tax advantages. While traditional IRAs offer tax-deductible contributions, Roth IRAs provide tax-free withdrawals during retirement.