Topic summary
Self-employed
Extracted from the Wikipedia article Self-employment.
401(k) retirement account
Self-employed workers cannot contribute to a company-run 401(k) plan of the type with which most people are familiar. However, there are various vehicles available to self-employed individuals to save for retirement. Many set up a Simplified Employee Pension Plan (SEP) IRA, which allows them to contribute up to 25% of their income, up to $54,000 (2017) per year. There is also a vehicle called the Self-Employed 401k (or SE 401(k)) for self-employed people. The contribution limits vary slightly depending on how the business is organized.