I don’t actually have a retirement account at the moment — I’m setting aside money to open one this year, but I’m still looking to make sure that I get exactly the right plan for me. I’ve been sorting through the variety of IRAs available to me and considering the new possibilities that come with incorporating.
An announcement from the Freelancers Union caught my eye this week. They’ve just started offering a retirement plan for freelancers. The plan is a 401(k), operated in partnership with Charles Schwab Trust Company and Milliman. It isn’t a solo 401(k) — typically the only 401(k) option available to freelancers and the self-employed — but a standard 401(k) plan, with the Freelancers Union standing in for an employer.
I’m not entirely sold on this 401(k) plan: there are many freelancers who will be able to save more money with a SEP IRA or another account. It will simplify retirement savings for many people, but I do think it’s worthwhile for freelancers to talk to a financial planner before deciding one way or the other.