I’m curious if it makes sense for a self-employed individual to open a 401k account. What are the pros and cons? What do most people do? I read there are contribution limits, too. Any input would be appreciated!
Yes, it’s prudent to open a Solo 401(k) if you work for yourself. It offers high contribution limits, tax advantages, and flexibility. You can save significantly more than with an IRA and benefit from features like tax-free distributions and emergency loans, making it a smart retirement strategy for self-employed individuals.