• Traditional Pension Plans
• Talk With Your Employer
• Ask About Plan Features
• Self Employed
• Company Doesn't Offer a Plan
• Company Doesn't Offer a Match
• Employer Matching
• Catch-up Contributions
• Automatic Enrollment and Increases
• Your Plan in a Volatile Market
• Feed Your Retirement Plan
• Understand the Market
• Review Your Retirement Plan

Resource Center

• Work With a Professional
• Plan for Your Situation
• Learn About Investing
• Manage Your Money
• Take Action
• Tools and Calculators
• Forms
• More...

Self Employed? Learn About Tax-Advantaged Plans

You're there for your clients. And, if you have employees, you make sure you're there for them, too. But, what if you are the only employee? Do you take care of your own needs?

It's never too soon

If you're self-employed, consider setting up a tax-advantaged retirement plan. Get started now and give your money more time to work for you.

One option available to you as a self-employed worker is a Keogh plan.

What’s a Keogh?

Also called an H.R.10, a Keogh lets you lower current taxable income using tax-deferred contributions. Any gains and earnings from your investment have the opportunity to grow tax-deferred over time, they compound more quickly, giving you higher growth potential in the long run.

Defined benefit & defined contribution defined

Choose from two kinds of qualified plans — defined contribution or defined benefit ­— or use a combination of the two.

In a defined contribution plan, each participant has an individual account. They select a specific amount to contribute now and receive their accumulated contributions, including investment returns, later.

In a defined benefit plan, a participant’s specific retirement benefit is determined; current contributions, generally made by the employer, are then estimated based on that future need.

Taking care of business

After deciding what type of Keogh plan to use, choose a written plan of action. If you write a customized action plan, you’ll need to pay a fee to get it approved by the IRS. However, you may be able to take a tax deduction for setup costs.

You can also opt for a master or prototype plan. Many organizations offer these IRS-approved plans, including:

• Insurance agencies
• Mutual funds
• Banks
• Professional organizations

Remember — if you set up a benefit plan for yourself, then you must also offer it to your employees if you have any. There are some ways, however, that you can restrict access to the plan.

Finally, choose how to invest. Invest assets yourself or through a trust or custodial account. Your plan can use many different types of investments to help your money reach its long-term growth potential. Investing involves market risk, including possible loss of principal.

Next steps

As a self-employed worker, you have many choices in setting up your retirement plan. Check out “IRS Publication 560: Retirement Plans for Small Business” (PDF) for more information.

The rules for each change periodically, so consult your investment professional to make sure you have the latest information, and help select the plan type that best meets your needs. Don't have an investment professional? Find out what an investment professional can do for you and learn how to choose one.

Neither Nationwide nor any of its representatives give legal or tax advice. Please contact your attorney or tax advisor for such guidance.