Roth IRA
Solo IRA - Take Benefit today if You are Self-Employed:
An individual who is self employed and wishing to setup tax saving pension, then Solo IRA is ideal choice for you. Solo Roth IRA and 401(K) are also likable options for self employed individuals. But all of these retirement savings schemes have their own advantages cum disadvantages, and tax related needs are to be analyzed before starting these accounts. Solo 401(K) is available for those who have employees. Generally traditional and solo IRA has no such significant dissimilarity. You are allowed to make pre tax contributions into this account, and any gains earned by this IRA grow on tax deferred basis until you withdraw the amount at retirement, thus withdrawal at retirement are charged taxes.
But in case of Roth IRA contributions into Roth account are after taxed dollars, and the individual is freed from paying any taxes more on profits he or she earned on Roth investments, even withdrawal of the contributed amount into your Roth IRA at retirement can be availed tax free. But all these Solo IRAs Roth or 401(k) require some income and contribution limitations.
Even you can setup one self directed Roth IRA or self directed 401(K), which can give you flexibility cum control over your own investment-portfolio. Taking benefit of 401(K) or Solo IRA against Roth retirement account depend on individual income cum tax situation, depending on your preference to pay tax now or later.
It is important to understand that one does not violate the rules by exceeding the contribution. If one wants to put in more, he can wait for a few months and then contribute the remaining money for the next tax year. This way it becomes easy to keep contributing maximum to the retirement fund and enjoy the benefits after 59 and half.
But in case of Roth IRA contributions into Roth account are after taxed dollars, and the individual is freed from paying any taxes more on profits he or she earned on Roth investments, even withdrawal of the contributed amount into your Roth IRA at retirement can be availed tax free. But all these Solo IRAs Roth or 401(k) require some income and contribution limitations.
Even you can setup one self directed Roth IRA or self directed 401(K), which can give you flexibility cum control over your own investment-portfolio. Taking benefit of 401(K) or Solo IRA against Roth retirement account depend on individual income cum tax situation, depending on your preference to pay tax now or later.
It is important to understand that one does not violate the rules by exceeding the contribution. If one wants to put in more, he can wait for a few months and then contribute the remaining money for the next tax year. This way it becomes easy to keep contributing maximum to the retirement fund and enjoy the benefits after 59 and half.
