What do the self-employed do for retirement plans?
Many sole proprietors find that the $3,000 per year limitation of IRA’s to be way too low for what
they wish to save in tax-free or tax-deferred retirement accounts.
The Keogh plans that allowed the self-employed to establish a profit-sharing plan, used to be a
good deal, allowing contributions of up to 15% of earnings along with a money-purchase pension plan
allowing an additional 10%, for a total tax-deferred savings of 25%. If you already have one, kill
it, but make sure you terminate it properly. You can roll the proceeds over into another retirement plan.