Self-employed individuals mostly have fewer options when looking for a retirement plan. Their choices are mostly limited to IRAs like SEP, SIMPLE, Roth etc or the Individual 401(k) plan. However most of these plans (except Roth) are made of tax deferred contributions where the money is taxed on making a withdrawal.
In the unfortunate event that one has to file bankruptcy, one may get concerned about their retirement savings. Many fret at the thought that their retirement savings may be joined in bankruptcy suits and that creditors may take their life savings away. Some even consider withdrawing all the funds from their 401(k) account to pay off their debt.
