Tax Free Retirement

As a self employed person, what are some of the options that I have for tax free retirement savings?

This is a great question since 2010 is the first year that everyone is eligible to convert to a Roth IRA. A Roth IRA is definitely one path for a tax free retirement. However there are still limits to how much you can make in order to be eligible to contribute to such a retirement account. If you are self employed and not eligible to contribute to a Roth IRA because you make too much you may want to set up a Roth 401k for your business and at least you will be able to contribute half of your retirement savings to a tax free withdrawal retirement account.

The only other method is to set up and overfund some type of permanent life insurance policy. Life insurance allows for tax free growth and tax free withdrawals using policy loans. There are no age restrictions from accessing your money so it can provide the small business owner an additional source of liquid funds that can shelter business income from taxtion.