f you think a defined benefit plan could work for you, Pioneer Investment's Uni-DB is a good place to start your investigation. Solo 401(k) If you're afraid of commitment, as many of us are, the solo 401(k) plan might be a better solution. It resembles corporate America's 401(k) except that you can contribute more money. Your total contribution to a solo 401(k), a.k.a. self-employed 401(k), can't exceed $42,000 for 2005 ($46,000 for people age 50 and over). That's a big difference from the corporate folks, whose max for 2005 is $14,000 ($18,000 for the 50 and up crowd). Here's why. As a self-employed person, you can have $14,000 withheld from your paycheck, just like any other employee. But then, as the employer of a self-employed business, you can contribute another 20% of your net self-employed income. For instance, if you make $140,000, you can contribute another $28,000 to the solo 401(k) plan. That would bring you to the total $42,000 for the year. The total contribution can't exceed $42,000 for 2005 and the plan must be established by Dec. 31 to qualify for this year, reminds O'Donnell. In addition, there are no set-up or annual maintenance fees. The only drawback is that once your plan's assets exceed $100,000, you'll have to file a Form 5500, Annual Return/Report of Employee Benefit Plan, with the IRS. And just like any other 401(k), you can't withdraw the money before reaching 59-and-a-half without a penalty. The World of IRAs If you're thinking you'll never have an extra $42,000 to stash away, consider an IRA for now. There are two basic choices for self-employed folks. If it's just you or you have a few employees, the SEP-IRA or Simplified Employee Pension could work. You can contribute up to 20% of your net earnings to a maximum of $42,000. So that could mean a potential $42,000 deduction on your business tax return, if you had the money. And this IRA doesn't have to be established until the time your file your tax return -- including extensions. So if you put your 2004 tax return on extension again and it's now due on Oct. 15, you could still set up a SEP-IRA for 2004 and make a qualifying contribution. There are no real administrative responsibilities here, but remember that you'll get hit with a 10% penalty if you try to withdraw the money before age 59-and-a-half. But run the numbers because you may still be better off with a solo 401(k). Let's say your net earnings are around $75,000 a year. With a SEP- IRA, your deductible contribution will max out at 20%, or $15,000. But with the solo 401(k), you can first defer the $14,000, then contribute the 20%, or $15,000, on top of that. So you just put away $29,000 with the solo 401(k) vs. $15,000 with the SEP-IRA. "If you have the money, it makes no sense to have an IRA, you might as well do a solo 401(k)," says Fooden. And for those of you who are over 50, keep in mind you don't get a catch-up provision with a SEP-IRA. With the solo 401(k), you can tack on another $4,000 to your $14,000 deferral. If you have 100 or fewer employees, you may consider a Simple IRA, which is basically the same as a SEP-IRA except your contribution is capped at $10,000 ($12,000 for people 50 and over). If you're on your own now and anticipate adding employees to the payroll in the near future, this may be a good option. In addition, if you don't make a ton of money but are able to sock most of your profits away, the Simple IRA could be a good choice. Let's say your business only makes $20,000 but you can afford to save $10,000. With the Simple IRA, you can. If instead you had a SEP-IRA, you'd only be able to contribute 20% of that $20,000, or $4,000, notes Fooden. Big note: Your Simple-IRA plan must be up and running by Oct. 1 of the current tax year to qualify. If you're just getting your company off the ground, an IRA may be a good place to start. And know that you can always roll an IRA into a solo 401(k) down the road when your business starts to boom. So call Fidelity, Citigroup's (C:NYSE - news - research - Cramer's Take) Smith Barney unit, T. Rowe Price (TROW:Nasdaq - news - research - Cramer's Take), Charles Schwab (SCH:NYSE - news - research - Cramer's Take), or any other broker, and start saving. Pick a plan and put money away monthly. And then think about how great it will be when you finally pass on the business you started to your kids, and retire to your dream house in style.