Retirement planning for the self-employed

The number of self-employed Americans has skyrocketed in recent years. Whether fully self-employed or supplementing your income, consider saving some self-employment income in a tax-deferred retirement plan. Here are four possible retirement plans for the self-employed.

1. Solo 401(k) Plans: 401(k) plans for small companies often have high administration costs and limited investment options. Solo (individual) 401(k) plans are now available through custodians such as Schwab, Vanguard and Fidelity. These plans are only available to the self-employed.

For 2012, the Solo 401(k) plan provides for a maximum employee contribution of $17,000 ($22,500 for individuals age 50 and over) or 100 percent…