Set up a 401(k) for Your Business
If you are a baby boomer worried about the erosion of your retirement savings, and you have extra cash in your business this year (“Cash?” “What’s cash?”), consider starting a 401(k) for your business instead of getting an IRA. You can start a 401(k) even if you have a sole proprietorship. As a matter of fact, it’s easier to start a 401(k) if you have no employees, because the administrative regulations and restrictions are less.
The advantage of a 401(k) over an IRA is that you can put more money in it. You can put $15,500 in the 401(k) plan ($20,500 …read more