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Newest Pension Plans Target Self-Employed
Startup Journal: “Financial-services companies are offering a way to help self-employed workers stow away more money for retirement: pension plans. These so-called defined-benefit plans allow self-employed workers to set aside $100,000 or more a year, substantially more money for retirement than they ever could in a traditional 401(k). The maximum self-employed workers could save in a solo 401(k) is $46,000 in 2005. Solo 401(k) plans allow the self-employed to make a contribution from their businesses’ profits, and then to contribute additional money from their salary, up to a certain maximum.”
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