Here's one for free agent worker

Chicago Tribune ^ | March 13, 2005 | Janet Kidd Stewart

[satchmodog9]

As more workers are jumping--or being pushed--off the corporate ladder, a slew of new tax and savings benefits are softening their landing.

The Solo 401(k) is one of the fastest-growing cushions. It is a retirement savings plan aimed squarely at the growing number of free agents running one-person companies.

In the three years ending in 2003, the ranks of the self-employed grew by 6 percent to 12.2 million people, according to the Small Business Administration.

Entrepreneurs have poured about $2.8 billion into Solo 401(k) plans since their launch in 2002, and that's expected to jump to $5 billion by year's end, according to Chris Brown, who tracks the plans for Financial Research Corp., a Boston consultant.

Continued employer cost-shifting and the decline of traditional pension plans, meanwhile, is making it more attractive to go out on your own, said Daniel Pink, author of the 1998 book "Free Agent Nation," which defined a growing movement away from traditional corporate work and life.

"Corporate America is treating employees more and more like free agents. At the same time, there's not as much job security," said Pink, whose new book, "A Whole New Mind," focuses on the education workers will need in the future. "We're heading to a world where there is more risk shifting from organizations to the shoulders of individuals. You're going to see greater migration between corporate America and independent contracting" as workers blend in and out of traditional corporate settings.

Enter the Solo-K. The flexible plans allow much bigger contributions and tax breaks than have been available previously. For 2005, you can stash away up to $42,000--$46,000 if you're over 50--and those contributions come off your taxable income.

[satchmodog9]

This is something I plan to investigate. The IRS lets the self employed enjoy a large number tax advantages. They just don't make them common knowledge.