Donna Genie walks small business owners through retirement planning basics: IRAs let you contribute $7,000 yearly (or more if you're over 50), and consolidating multiple accounts into one plan makes managing them far simpler. Get personalized advice before you decide.
$7,000 a year
Roll 401(k)s and IRAs (and SEPs) into a single plan; keep retirement accounts together for easier management.
Retirement. Oh, that's a great thing. But retirement is a really different thing than it used to be. Retirement now means not just calling it a day and sitting on the front porch in the rocking chair watching the cars go by, but retirement means a new flexibility and a new freedom to accomplish the things that you want to in your life. So how do you go about saving for retirement when you're operating your own business? I'm often asked, what's the best retirement plan for somebody who owns their own business? You can go with an IRA in most cases. Again, I'm going to give some general advice. You need to have specific advice to apply to your particular situation. But an IRA allows you to set aside up to currently $7,000 a year. Perhaps if you're over 50, you might be able to do a little more. But it has some pretty big limitations and won't let you invest a lot. You can take your 401s and your IRAs and roll them all into your own plan. I recommend you have them in one plan. Don't, don't have an IRA. A 401k, a SEP, all these different variations, put them all together, make it easy to manage.
