Before starting my own business I funded a 401k through work, which I'm about to roll over into a IRA at Vanguard. I also have a Roth IRA at Vanguard funded with extra money I made while being employed.
Currently, my business is in a building phase and this year I expect to make between $19,000 and $25,000. I expect to be making $30,000 to $40,000 within a few years.
My question regards the best tax strategy/investment account for retirement savings for someone in my income range.
Last year, when I was only made about $12,000, I earned so little money that, according to FreeTaxUSA, the tax website I use, putting money into a 410k would not have reduced my tax liability (I think because there are minimum taxes for self employed people that cannot be reduced by such contributions. I'm having trouble finding out why that is and what the income range cut off is for this to be a factor.)
I'm unsure what retirement account I should be using for my income range. I believe I could continue to fund my IRA or Roth Ira, but might it be a better idea to put money into a Solo 401k or a SEP IRA?
Any thoughts on the best way to invest for retirement?