Traditional IRA:

• Best for: Those just starting out.
• These accounts offer the ability for tax deductible contributions and tax deferred growth.

Roth IRA:

• Best for: Those just starting out.
• Contributions are made with after-tax dollars and money comes out in retirement tax-free.

SEP IRA:

• Best for: Self-employed people or small-business owners with no or few employees.
• Contributions to a SEP IRA are tax deducatble.
• Contributions can only bemade by the employer, no employee contributions are allowed. 
  • Because of this contribution limits are smaller than they are with Solo 401(K)s.

Individual 401(k):

• Best for: A business owner or self-employed person with no employees (except a spouse usually) that are looking for higher cont. limits then the SEP IRA.
• Tax deductible contributions can be made by both the employer and the employee. 

SIMPLE IRA:

• Best for: Larger businesses, with up to 100 employees.
• These have smaller limits compared to the Solo and SEP plans.

Defined Benefit Plans:

• Best for: A self-employed person with no employees who has a high income and wants to save a lot for retirement on an ongoing basis.

At Brighter Days Planning we are currently using a SEP IRA for our retirement plan. 

=======================

Resources:

💸 Free Resources

🌔 Get Started on Your Moonshot Today!