Hi all,
My husband recently started receiving self-employment income, and I want to move as much of it as possible into a tax-deferred retirement account of some sort. I did my research on the web, and set my heart on the individual 401k, due to the ability to contribute the largest amount. It seems like the most logical choice, and Vanguard is very helpful throughout the process of setting up.
However, i401k is inconsistently covered in various online tutorials/help pages/FAQs. SEP IRA and SIMPLE IRA are more consistently discussed. Is this because i401k is a newer product? Or is there a reason why it is a sub-optimal (or unavailable) choice in some situations? Since we don't plan on having any employees soon, it seems a no-brainer, but am I missing something? I can't see a downside. (The 'Individual 401(k) Basic Plan Document' that Vanguard provides is 80+ pages of small-print, single-spaced legalese. I started reading this afternoon and gave up.)
Thanks.