Best Retirement Savings Accounts for Self-Employed Individuals
Planning for retirement as a self-employed individual might feel overwhelming.
Without an employer-sponsored 401(k), you’re left to navigate the landscape yourself.
But the good news is — there are excellent retirement savings options tailored just for you.
In this guide, we’ll walk through the most effective accounts you can open today to secure your financial future.
Table of Contents
Solo 401(k): Powerful for High Earners
If you’re a freelancer or small business owner with no employees, the Solo 401(k) is one of the most powerful options available.
It allows both employee and employer contributions — up to $69,000 in 2024 if you're 50 or older.
You can choose a traditional Solo 401(k) for pre-tax savings or a Roth Solo 401(k) for tax-free withdrawals later.
This plan is ideal for self-employed individuals with high income and no employees.
SEP IRA: Simple and Flexible
The SEP IRA (Simplified Employee Pension) is a favorite among solo entrepreneurs and small business owners.
You can contribute up to 25% of your net earnings, up to a limit of $69,000 in 2024.
Setup is straightforward and it has minimal maintenance, making it ideal for those who want less paperwork.
SIMPLE IRA: Great for Small Teams
Do you have a few employees?
The SIMPLE IRA (Savings Incentive Match Plan for Employees) might be your go-to.
Employers must either match contributions up to 3% of salary or contribute 2% regardless of employee input.
It’s less flexible than other plans but perfect for micro-businesses looking to offer retirement benefits.
Traditional & Roth IRAs: For All Incomes
No matter your employment status, Traditional and Roth IRAs are a staple.
You can contribute up to $7,000 in 2024 (or $8,000 if 50+).
The Traditional IRA offers upfront tax benefits, while the Roth IRA provides tax-free withdrawals later.
Even if you contribute to another plan, you can still max out your IRA contributions.
Final Thoughts
Choosing the right retirement account is one of the smartest moves a self-employed individual can make.
Whether you’re flying solo or managing a small team, there’s a plan that suits your goals and simplifies your tax situation.
Be sure to consult a financial advisor before committing — and start early!
The earlier you save, the more time compound interest has to work its magic.
Keywords: self-employed retirement, solo 401k, sep ira, roth ira, simple ira
