When many of America's 15 million self-employed workers think about retirement planning, fear and confusion are often abound. Freelancers and owner-only businesses frequently think they're too small for a 401(k), or believe that starting a plan is too pricey. In actuality, setting up and managing an Individual 401(k) can be simple and straightforward, and newer digitally enabled providers even allow owners to quote and set up a plan online.
If you're looking for ways to reduce your 2016 tax bill and plan for retirement, starting an Individual 401(k) plan may be a smart move before yearend. But remember, it's always a good idea to talk with a trusted financial consultant and tax advisor before moving ahead with any retirement or business planning decisions.
More from FA Playbook:
How many old 401(k) accounts are now lurking in your past?
Are you a boomer with a company pension? Know your payout options before retirement
Where your paycheck will stretch furthest: 10 best cities for return on salary
Here are three ways Solo 401(k)s can benefit owner-only businesses.