How can I save for retirement as a freelancer?

How can I save for retirement as a freelancer?

Saving for retirement as a freelancer can be challenging, but there are several strategies you can use. Have you considered setting up a retirement account like a Solo 401(k) or a SEP IRA?

I haven't thought about those options. Can you explain how a Solo 401(k) works?

Sure! A Solo 401(k) is designed for self-employed individuals. You can contribute both as an employee and an employer, allowing for higher contribution limits. This means you can save more for retirement compared to traditional IRAs.

That sounds great! Are there any tax benefits?

Yes, contributions to a Solo 401(k) are tax-deductible, which can lower your taxable income. Additionally, the money grows tax-deferred until you withdraw it in retirement.

What about other retirement savings options?

Other options include a SEP IRA, which is also great for freelancers, or a traditional IRA. Each has its own contribution limits and tax implications, so it's worth exploring which fits your situation best.