Tons of self-employed people aren't saving for their retirement as they could be because they don't think they're able to start a 401(k). But solo 401(k)'s are quite possible, as I have written about. They just got more advantageous:
For self-employed individuals with a simplified employee pension—a SEP plan—or a solo 401(k) designed for independent contractors such as consultants or real estate agents and sole proprietors, the contribution limit increases from $46,000 to $49,000.
I wrote in my previous article about how the annual $46,000 allowed for a solo 401(k) could drop someone a tax bracket. It's now an even better tax shelter thanks to this limit increase.
Of course, 401(k)'s have gotten a bad rap in the media recently after so many lost value because of the drops in the market. But really, despite the ups and downs of the market, over a long period of time, your 401(k) will very likely benefit.
Jeff Nabers of CO @ Nov 21, 2008 03:05:03 AM
JT Thompson of CA @ Oct 25, 2008 13:43:12 PM
April E, Coggins of WA @ Oct 25, 2008 00:34:24 AM