Many people prefer not to be restricted to the options a former employee makes available.
One note for you as a self-employed person. You could establish a 401(k) for your new enterprise and roll the old 401(k) into it. If you have employees, this is a little more complicated but plans for solo shops are cheap and easy to set up and maintain.
A Traditional IRA contribution is fully deductible if your income is under a certain level or if you (or your spouse) don’t have an employer-sponsored retirement plan. If you (or your spouse) do have a 401(k) or pension plan, the tax-deductible portion of your IRA contribution may be limited.
Jul 29, 2014
by Ensemble Financial