How to save money for your retirement without a 401k
There are alternatives to a 401k that has tax advantages. When considering saving for retirement, most people will receive the advice to acquire a 401k. But many individuals do not have access to a 401k through their workplace. The statistics for those that do not have access is around 31% of the workforce.
It is still possible to save for retirement if you are among those workers that do not have access to the 401 k retirement plan. Individuals such as entrepreneurs and Freelancers or even those that have side gigs need to save as well but can pursue other Alternatives that are just as advantageous.
IRA
IRA stands for individual retirement accounts and you have more than likely …show more content…
You are allowed approximately 15 1/2 months to deposit your yearly contributions into your IRA account. Deadlines are not negotiable and tax extensions do not have any bearing on the amount of time you're able to contribute to either IRA. Early withdrawals usually include a 10% penalty but there are some situations where a waiver will be granted. More information regarding waivers there are other circumstances is available at irs.gov.
SEP IRA
If you are a freelancer or you are self-employed you're eligible to open in SCP or simplified employee pension plan. The SEP IRA has the possibility of tax benefits for those who have small businesses or create income through freelancing.
Who may open in SEP IRA?
C corporations, S corporation, partnership and sole proprietor are eligible to open a SEP IRA.
How a SEP IRA works
It is classified as a traditional IRA and tax deductions May apply to contribution. The difference is that the SEP IRA has a significantly higher contribution limit. Your contribution limit is based on your income. The limit in 2016 is 25% of your pre-tax income or if you are self-employed 20%. Or it can be $53,000 whichever is the lower …show more content…
Who should have A SEP IRA This type of Ira works best for employers, Freelancers, and other unique business situations. These types of IRAs do not cost much to set up more to maintain. There are also no tax forms that need to be filed.
Things you should know Employee referrals and contributions intended to catch up to the Limit are not allowed with this type of Ira. Employers May contribute up to $53,000 or 25% of employee wages. The tax deadline is also the deadline for setting up an account. April 17th, 2017 will be the 2016 deadline. You can get an extension by filing for a tax return extension and the deadline will be the same for both.
401K self-employed
Even if you aren't earning a great deal of money a 401k designed for the self-employed can help you create substantial savings for retirement. This type of 401k is also called a solo 401K. Contributions before and after tags are allowed for these types of 401k, but not every day or other financial institution will offer this 401K as an
There are alternatives to a 401k that has tax advantages. When considering saving for retirement, most people will receive the advice to acquire a 401k. But many individuals do not have access to a 401k through their workplace. The statistics for those that do not have access is around 31% of the workforce.
It is still possible to save for retirement if you are among those workers that do not have access to the 401 k retirement plan. Individuals such as entrepreneurs and Freelancers or even those that have side gigs need to save as well but can pursue other Alternatives that are just as advantageous.
IRA
IRA stands for individual retirement accounts and you have more than likely …show more content…
You are allowed approximately 15 1/2 months to deposit your yearly contributions into your IRA account. Deadlines are not negotiable and tax extensions do not have any bearing on the amount of time you're able to contribute to either IRA. Early withdrawals usually include a 10% penalty but there are some situations where a waiver will be granted. More information regarding waivers there are other circumstances is available at irs.gov.
SEP IRA
If you are a freelancer or you are self-employed you're eligible to open in SCP or simplified employee pension plan. The SEP IRA has the possibility of tax benefits for those who have small businesses or create income through freelancing.
Who may open in SEP IRA?
C corporations, S corporation, partnership and sole proprietor are eligible to open a SEP IRA.
How a SEP IRA works
It is classified as a traditional IRA and tax deductions May apply to contribution. The difference is that the SEP IRA has a significantly higher contribution limit. Your contribution limit is based on your income. The limit in 2016 is 25% of your pre-tax income or if you are self-employed 20%. Or it can be $53,000 whichever is the lower …show more content…
Who should have A SEP IRA This type of Ira works best for employers, Freelancers, and other unique business situations. These types of IRAs do not cost much to set up more to maintain. There are also no tax forms that need to be filed.
Things you should know Employee referrals and contributions intended to catch up to the Limit are not allowed with this type of Ira. Employers May contribute up to $53,000 or 25% of employee wages. The tax deadline is also the deadline for setting up an account. April 17th, 2017 will be the 2016 deadline. You can get an extension by filing for a tax return extension and the deadline will be the same for both.
401K self-employed
Even if you aren't earning a great deal of money a 401k designed for the self-employed can help you create substantial savings for retirement. This type of 401k is also called a solo 401K. Contributions before and after tags are allowed for these types of 401k, but not every day or other financial institution will offer this 401K as an