If a traditional IRA sounds appealing, but you would rather not worry about your taxes during your golden years, then a Roth IRA may be for you. A Roth IRA has the same contribution limits as a traditional IRA. However, your contributions are now tax deductible rather than your withdrawals. You pay the taxes as you invest so that you can enjoy tax-free withdrawals from the account during your retirement.
If you are self-employed and have no employees, then a solo 401(k) is a great option. You can contribute up to $20,500 annually, like a normal 401(k), as well as a $6,500 catch-up contribution for adults 50 years old or older. You can choose a Roth version to pay taxes on your contributions or a traditional plan to pay taxes on your withdrawals.
No matter what you are considering, Empower suggests first speaking with a financial professional.
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