Fresh Facts for Freelancers Funding Their Retirement Accounts

The shift to a 'gig' economy remains intact with more people than ever working as Uber drivers or Airbnb owners.

Corporate America is still in hiring mode, as evidenced by the strong June Jobs number. But, the secular shift to a 'gig' or freelance economy remains intact with more people than ever working for themselves as Uber drivers or Airbnb owners. And all those independent contractors better not forget to fund their retirement accounts, said Ed Slott, founder of Ed Slott and Company. 'You're on your own so it's up to you to start saving for your retirement,' said Slott. 'No one is else is doing that for you.' Roth said freelancers should start with a simple Roth IRA with a $5,500 annual contribution. Those age 50 or over can add the catch-up contribution or $1,000, for a total of $6,500. Married freelancers can add a spousal Roth IRA contribution as well. Slott recommended self-employed people 'contribute off the top' before the money is spent. In his view, the best move is to put retirement savings on auto-pilot with automatic withdrawals as part of a budget. Those working full or part time in addition to their freelance gig can also make a SEP IRA contribution in addition to their 401(k) and a Roth IRA contribution too. And don't forget to get the company match from your employer, said Slott. 'If you can do more than the simple Roth, you can set up a SEP or even a solo 401(k) where you can put lots more money if you are making more,' said Slott.