Retirement Plan for Self Employed Individuals

Many self employed individuals use a KEOUGH or SEP IRA as their retirement plan.  If you have the cashflow to make even greater contributions than these two plans allow, you should consider a solo 401k.  It is fairly easy to set up.  The great part is you can contribute as both employer and employee.  An individual can contribute a total of up to $49,000 per year or $54,500 if over age 50.  However, you have until December 31, 2009 to make your 2009 contributions.  If anyone is fortunate enough to have had a good year and can afford to make a larger contribution to your retirement plan, you should think about the solo 401k.