The Wall Street Journal BuySide Quotes Facet’s Matthew Dellaero, CFP® on Self-Employed Savings

The Wall Street Journal Buy Side featured Facet’s Matthew Dellaero, CFP®, to help self-employed workers choose the right retirement accounts and navigate unique tax rules.

Senior Lead Planner Matthew Dellaero, CFP® shares actionable retirement saving strategies for entrepreneurs with The Wall Street Journal.

Solo 401(k)s are only open to business owners (and their spouses) with no full-time employees. A SEP, on the other hand, mandates that business owners contribute for eligible employees at the same rate they contribute themselves, which can get expensive.
While it’s true that retirement contributions reduce your income tax, they generally do not reduce your self-employment tax, since that tax is calculated on net profit before the retirement deduction comes out. That surprises a lot of people who assume contributions would shrink the entire tax bill.