I file a Schedule C for some consulting work outside my primary job. I do not have employees although subcontracted a small part of my work this past year.
If I want to contribute some of my income to a retirement account, can I just use my existing Traditional IRA or do I need to set up a separate "Self-Employed Retirement Plan."
You can do both, contribute to your IRA and also set up a SEP IRA for your business. Contribution limits for each are separate. The program will tell you how much you can contribute to the SEP.
Yes, you can just use your Traditional IRA, but if you open a Self-Employed Retirement Plan, you may be able to save more money.
You can contribute up to $6000 (or $7000 if you are over 50) into your Traditional IRA as long as you have at least that much earned income.
If your goal is to contribute more than that, you should consider other options.
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