Even as the economy recovers from the COVID-19 pandemic, it seems that we’ve entered a period of permanently high entrepreneurship moving forward.
There are about 16 million workers in the U.S. who consider themselves to be self-employed now, up from around 13 million in mid-2020, according to the Pew Research Center.
The self-employed often come to CPAs for business advice, so why not retirement planning? As the number of entrepreneurs grows, CPA firms can grow with them by providing needed retirement planning advice.
There are five primary retirement programs available to the self-employed: IRAs, SEP-IRAs, SIMPLE IRAs, solo 401(k) plans and defined benefit pension plans. When discussing these programs with your self-employed clients, consider these pros and cons.