As we all know employment markets have been tight over the last several years, but Americans have a tendency to find a way. There has been an increase in the number of people who are self-employed, and this can be an option for those who are willing to take matters into their own hands.
Economic Modeling Specialists International has stated that there has been a 14% increase in the number of people who work for themselves for the most part between 2001 and the present time. There are some 10.6 million self-employed people in the United States.
If you are among them you must take personal responsibility for your own financial stability during retirement. Those who work for a company are often offered the opportunity to contribute into a group 401(k) plan. Many employers will actually match contributions made by employees up to a certain percentage.
Of course if you are self-employed the above option is not going to exist for you. However, there are 401(k) plans for self-employed individuals; you just need to take action to create an account, learn the rules, and make contributions into it.
During 2013 the maximum allowable contribution is $17,500. If you are 50 years of age or older you can add an additional “catch-up” contribution, and the maximum amount that you could add was $5500 in 2012.
Self-employment can be rewarding on many different levels, but it is up to you to prepare for your future. To discuss your retirement vision with an expert don’t hesitate to give us a call at 843-577-3700 to set up a free retirement planning consultation.
John Kuhn, Estate Planning Attorney
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