How to Begin 401K for Self Employment

Many companies offer 401K retirement plans. They will match your 401K deposits, either completely or partially. What if you're self employed? How do you set up a 401K for your retirement? These are good questions to ask, particularly if you don't want to work all your life. There is good news! You can begin a 401K while self employed to save money for retirement.

Difficulty: Easy

Instructions

1. Determine if you're eligible to do the solo 401K or self employed 401K plan. You'll have to be self employed each year that you make contributions to the 401K plan. Additionally, you'll need some money to contribute from your earnings.

2. Talk to a financial adviser about a solo 401K plan or self employed 401K plan. Find out what paperwork needs to be filled out. Find out what tax breaks you get from the solo 401K plan that will further help you save for your retirement.

3. Fill out all the paperwork and start contributing to your 401K plan. Keep all your paperwork and deposit information in one location. You don't want to lose those files. They'll be very important for your retirement.

4. Watch your retirement grow with the solo 401K plan. Know that each day while you're working, you're planning for your future retirement.

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[cygnetbrown]

on 8/7/2009 I can't wait to be able to do this!