Which Bucket Do I Qualify For?

Investing
#1

Hi Jeremy,

I’m currently self employed without a Corp set up. I have three savings accounts currently set up - a Roth IRA which I max out every top of the year, a brokerage account, and then just a basic money market savings account. Within my brokerage account and Roth I invest within index funds + a few individual stocks. I was wondering what other “bucket” I could open up that has more of a tax benefit which I can invest within. For example, does it make sense for me to open a 401k? Could I even do that as self employed? Also, FYI I’m starting a Corp at the begging of the year.

thanks so much, Jeremy!

best,

Scott

#2

Hi Scott,
401k plans are employer-sponsored, but there are options for self-employed workers such as a solo 401k or SEP IRA. Another bucket with a tax benefit is an HSA, which is only available if you have a qualifying high deductible health plan. I’m not sure how having a corporation would change your options so I can’t comment on that!