Best Retirement Plans for Solo Entrepreneurs: 2024 Guide to Maximizing Savings with No Employees

Are you a solo entrepreneur puzzled by the myriad of retirement planning options?

Mike Jesowshek welcomes back Matt Ruttenberg to discuss retirement plan options for solo entrepreneurs without employees. They highlight various plans like IRAs, SIMPLE IRAs, SEP IRAs, and solo 401(k)s, emphasizing the importance of starting with the desired savings amount to determine the most suitable plan. The episode covers the contribution limits, the benefits of each plan type, and the financial implications of choosing one plan over another, particularly in terms of tax deductions and maximizing retirement savings.

Discover how choosing the right plan can maximize your savings and secure your financial future by tuning in!

[00:00 - 05:48] Exploring Basic Retirement Plan Options, SEP IRAs, and Solo 401(k)s

• Mike introduces the topic of retirement plans for solo entrepreneurs.
• Matt discusses simple retirement options like individual IRAs and SIMPLE IRAs, highlighting their benefits and contribution limits.
• He elaborates on the higher contribution limits of SEP IRAs and the advantages of solo 401(k)s, including their structure and potential for higher savings.

[05:48 - 15:22] Comparison of SEP IRA and Solo 401(k) Contributions and Decision-Making in Retirement Planning

• Matt and Mike share a detailed explanation of how contribution limits are calculated based on business type and income.
• They discuss the extra benefits of solo 401(k)s, such as catch-up contributions for those over 50.
• Choosing the right retirement plan based on the amount one wants to save simplifies the decision-making process.

[15:22 - 20:05] Closing and Resource Mention

Direct Quote:

"So you might have a couple hundred dollars of fees, but you are netting a substantial amount more, going into that solo than you are with the SEP IRA." - Matt Ruttenberg

Connect with Matt Ruttenberg!

LinkedIn: https://www.linkedin.com/in/mattruttenberg/ 

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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