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If you are able to save more for retirement, your next stop should be to open an individual Roth retirement account, Slott said. In 2019, you can pay up to $ 6,000 in this investment account, in which your money fructifies tax-free.
However, to make this contribution, your income can not exceed $ 122,000 if you are single, or $ 193,000 if you are married.
Another option is a SEP IRA or IRA simplified, said Russell. Any money allocated to this account must come from your freelance income and you can pay up to a quarter of that income each year (or up to $ 56,000 in 2019).
"If you really want to save, the SEP IRA will grant you a deduction and its limit will be much higher than what you can get in your business plan," Russell said.
Russell recommends automating the retirement savings of your extra jobs, as do many companies with their 401 (k) s. While freelancers' earnings tend to be irregular, try to commit yourself to an amount that you know you can afford to contribute and "so if you have a very good month or quarter, you can always add some," he said. Russell.
Some companies you work for as freelancers may be willing to dedicate part of your salary to a retirement account, if you ask them, she added.
"Many people will not be able to take on more jobs as they get older," said Russell. So you need to know exactly what you want to get out of extra work – and for how long.
"Then, at the end, you will be able to make choices," she said.
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