If you have self-employment income, consider opening an Individual 401(k). The benefits are the same as an employer-sponsored 401(k), but you contribute as both the “employer” and the “employee” and receive reduced self-employment taxes in addition to an income tax deduction.401(k) investors who like the idea of paying tax today in favor of reduced tax bills in retirement, those who like the idea of the Roth IRA, can often choose to designate some or all of their 401(k) contribution as a Roth 401(k). Whether this is offered is up to the employer.
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