Do You Have a Side Business?Do You Have a Side Business?If you contribute to a 401(k) plan through your employer but do consulting work on the side, you may also be able to open a Keogh plan or a simplified employee pension (SEP) IRA. Although Keogh savers can contribute more per year, the paperwork is more complex. Also, if you contribute to a 401(k) plan at work, the amount of your contribution to a Keogh or SEP may be limited.
If you contribute to a 401(k) plan through your employer but do consulting work on the side, you may also be able to open a Keogh plan or a simplified employee pension (SEP) IRA. Although Keogh savers can contribute more per year, the paperwork is more complex. Also, if you contribute to a 401(k) plan at work, the amount of your contribution to a Keogh or SEP may be limited.
The 360 Degrees of Financial Literacy Web site offers general information for managing personal finances and does not recommend specific financial actions. For financial advice tailored to your situation, please contact an expert such as a CPA or a personal financial advisor.
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