- Nov 5, 2014
How are you saving for retirement? Usually, here, people just talk about re-investing their windfall proceeds but no one talks about saving for retirement. So far, I've found tons of options for saving money for retirement, as a solo entrepreneur. For example, you can create a solo-401k and then do a mega backdoor roth conversion, which places ~60,000k in post-tax dollars into a roth. You can also do a roth conversion (not mega) and place 6,000 dollars into a roth IRA, even if you make more than the income limit. The benefit of these plans over a normal brokerage account is that you only pay taxes once. For example, with a ROTH, you pay taxes on it this year and withdrawals are tax free. If you used a brokerage account, you pay taxes on your income, contribute to your brokerage account, and then pay taxes on withdrawals. There's also SEP, SEPP, SIMPLE IRAs, and a whole tons of other options that the IRS made to help you save for retirement. What are you using?