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Subject:  Re: Investment options for contract employee Date:  10/3/2000  11:18 AM
Author:  TMFPixy Number:  25258 of 90437

Greetings, Jen, and welcome. You wrote:

<<I am currently looking at a new job where I will be considered a contract employee, so there will be no benefits and no retirement plans. At my current job, I can contribute tax-free money to our 403b (about $5200 per year) and I also put $2000 into a Roth IRA. My concern with taking this new job is that there does not seem to be many tax-free investment options for retirement if you don't work for a company that provides a 401k or 403b. That just doesn't seem fair. I want to put more away each year than just $2000 into an IRA.

Any help on what some of my options are would be greatly appreciated.>>

don't be discouraged. If you are truly a contract employee paid via a 1099, then you are self-employed. That gives you three plans to choose from, the SEP, SIMPLE or Keogh. You'll find a brief overview of each in our Foolish Retirement Plan Primer at A more detailed discussion is in IRS Publication 560 (Retirement Plans for Small Business) available at

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