Retirement Savings For The Self-Employed
Kiplinger's Personal Finance|January 2020
If you don’t have access to a retirement plan through your employer, you have other options.
Rivan Stinson
Retirement Savings For The Self-Employed

AS TRADITIONAL PENSIONS have disappeared, many workers expect to rely heavily on a 401(k) as their primary source of income in retirement. But not everyone has access to an employer-sponsored plan. Roughly 30% of employers—most often small businesses— don’t offer retirement benefits to employees, according to the Transamerica Center for Retirement Studies. And those who are self-employed are also on their own when it comes to saving for retirement.

If you’re in one of these groups, you have options. And, just as it is for people with employer-offered plans, the sooner you start saving, the better positioned you’ll be when you retire.

Traditional IRA.

Individual retirement accounts, or IRAs, were established by the Employee Retirement Income Security Act of 1974. The law allows you to funnel money into a tax-deferred account held at a brokerage firm or bank. If your employer doesn’t offer a retirement plan, or you work for yourself, contributions are tax-deductible. You have a slew of options for investing the money in the account, including stocks, bonds, mutual funds, exchange-traded funds and other investments that fit your long-term goals.

You have until April 15, 2020, to set up and fund an IRA for 2019. Workers younger than age 50 who don’t have a retirement can sock away up to $6,000; those who are 50 and older can put away an additional $1,000 in catch-up contributions, for a total of $7,000. (The maximum contribution is the same for 2020.) You cannot contribute more than you earn, however. So, for example, if you made $5,000 working part-time in 2019, your contribution limit is $5,000.

Diese Geschichte stammt aus der January 2020-Ausgabe von Kiplinger's Personal Finance.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der January 2020-Ausgabe von Kiplinger's Personal Finance.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS KIPLINGER'S PERSONAL FINANCEAlle anzeigen
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 Minuten  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 Minuten  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 Minuten  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 Minuten  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 Minuten  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 Minuten  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 Minuten  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ Minuten  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 Minuten  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 Minuten  |
December 2024