#2 Boost your retirement savings by using your side hustle
Open a solo 401(k) plan if you receive income from self-employment or freelancing. Since you have until April 18th, 2023, to make contributions and get a tax credit for 2022, you should open it by December 31st. A solo 401(k) allows you to deposit up to $20,500 ($27,000 if you’re 50 or older), excluding any annual contributions you may have made to a 401(k) at a regular job.
Additionally, you are allowed to contribute to the plan up to 20% of your net self-employment income. In 2022, you can contribute up to $61,000 (or $67,500 if you’re 50 or older) to your solo 401(k), but you can’t contribute more than your self-employed income per year.
