How To Save For Retirement When You’re Self-Employed

If you want to save money for retirement but a 401k isn't offered at your job, or you are self-employed, there are still plenty of options that can help you prepare for the future.
For generations, the most common financial advice has been to save for retirement as soon as you start working. However, with the growing number of entrepreneurs and on-demand gigs, resulting in more independent contractors, the traditional way of starting a retirement plan through your employer does not work for those who are self-employed. Instead, those who are self-employed are responsible for their own benefits.
Below are a few options you may want to consider for retirement if you do not have a 401K plan:
Traditional IRA – With this account, you will make tax-deferred contributions until you withdraw them at retirement. You may even have the opportunity to deduct these contributions on your tax return.
Roth IRA – You will also make contributions to this account; however, the money you contribute will already be taxed (after-tax). This potentially allows your earnings to grow tax-free and withdrawals after five years and in retirement will also be tax-free.
Rollover IRA – If you previously worked for a company in which you contributed to an employer-sponsored plan such as a 401k or 403b, then a rollover IRA may be an excellent option. You will deposit money to this traditional IRA "rolled over" from the funds in that qualified plan.
A Simplified Employee Pension Plan (SEP-IRA) is also an option that you can explore for retirement if you are self-employed or an independent contractor. This plan provides access to tax-deferred savings for retirement.