One-Person 401(k) Plan

Self-Employed Persons:

If you're self-employed and have no employees, except for your spouse, you can set up a one-person 401(k) plan.

You're allowed to contribute more to a one-person 401(k) plan than you could to a Keogh plan.

For example, for 2012, elective deferrals of up to $17,000 ($16,500 for 2011) are permitted. If age 50 or over, an additional, catch-up contribution of $5,500 may be made for 2012.

In addition to elective deferrals, a contribution of up to 20% of net earnings can be made to your account.

File your personal and small business taxes (Schedule C)