Those who are self-employed or have small businesses have many choices for funding their retirement. Below I’ve highlighted some of the most popular.

• Self-employed (or solo) 401(k) – This is for individuals who are self-employed or business owners who have no employees. Just like a regular 401(k), your contributions reduce your taxable income. Salary deferral contributions are capped at $15,500 for 2008. However, those age 50 or older can contribute an additional $5000. In addition, business owners can make additional profit-sharing contributions of 25% of compensation, up to $46,000.

• SEP-IRA – Only the employer can make contributions to the SEP-IRA for him- or herself and on the behalf of the employees.Also, the percentage contributed must be the same for every employee. The annual contribution is the lesser of 25% of compensation or $46,000.While earnings grow tax-deferred until withdrawn, there are no loans allowed against the value of the SEP-IRA.

• Simple IRA – This is a relatively inexpensive plan to establish.The employer can contribute for himself as well as on the behalf of the employees.The annual limit on these contributions is $10,500 or 100% of compensation, whichever is less.No loans are allowed against the value of the Simple IRA.