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From the link:

This plan is very attractive for people with "on-the-side" incomes that they don't need for day-to-day expenses.

Yes, this type of account allows you to sock away, pre-tax, a sizeable portion of your income from self-employment.

The "on-the-side" part may be misleading. (I didn't pursue any of the links in the link or the calculators.) A 401(k) allows both employer contributions and employee salary deferrals. If you run a part-time business on the side and have salary deferrals at your main job, those deferrals count against the per-person annual deferral limit. However, employer contributions would still be possible from the side job. In a self-employment situation, one person wears both the employer and employee hats.

For more information about these plans, and other retirement vehicles available to the self-employed, see IRS Publication 560.

Phil
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