Of the more than 150 million workers in the U.S.,16 million identify as self-employed. That means more than 10% of the working population doesn’t even have the option for an employer-sponsored retirement savings plan. Until now.
What is a Retirement Plan for the Self-Employed?
A retirement plan for the self-employed is a way for people who work for themselves to receive tax benefits for saving for retirement. Previously, this was only available to either employees of companies that offered 401ks or workers who navigated the complicated, and sometimes expensive process of opening another type retirement savings account with a financial institution.
Now, self-employed workers can participate in a retirement plan that is easy to manage, inexpensive and portable. So they never lose access or the ability to contribute to their account, they’ll never need to complete an expensive rollover and they’ll never again experience a lapse in coverage.
Icon is the Ideal Retirement Plan for the Self-Employed
Whether you work for yourself as a sole proprietor or individual contractor, or you have employees, Icon is the ideal retirement plan for you. As a self-employed worker, you don’t have a lot of time and financial resources to manage and administer a retirement plan. And high fees will eat into your savings, which in some cases, could force you to delay retirement. You need something that’s simple to manage, inexpensive to maintain and helps to build your financial security in retirement.
That’s where Icon comes in. You can set up your Icon account in minutes, you receive guided portfolio options based on your answers to a short survey and the low, flat fees allow you to retain as much of your savings as possible. This allows them to grow faster because of compound interest. If you choose to hire employees in the future, there’s no need to switch plans.
Details You Should Know
- Contributions to Icon’s IRA are typically tax-deductible in the year they’re made. Distributions made in retirement are subject to the appropriate income tax rate.
- The annual contribution amount for 2022 is $6,000 for workers under the age of 50, with an additional $1,000 allowed if you’re aged 50+.
- You always have access to your account and as long as you earn money, you can contribute to it.
- Your contributions to your Icon account aren’t considered a business expense.
- Both you and your spouse can open an Icon account as long as you both earn money.
- You can roll your old retirement accounts into your Icon account.