One of the most common concerns I hear from self-employed clients is: "I don't have a 401(k) through an employer — am I falling behind on retirement savings?" The answer might surprise you. Self-employed people actually have access to retirement accounts with higher contribution limits than most employer plans.

The Three Main Options

SEP-IRA (Simplified Employee Pension)

The SEP-IRA is the simplest option for most self-employed people. You can contribute up to 25% of your net self-employment income, with a maximum of $69,000 in 2025. Contributions are tax-deductible, and you can open and fund a SEP-IRA as late as your tax filing deadline (including extensions).

Solo 401(k)

The Solo 401(k) is the most powerful option for high-earning self-employed individuals. You can contribute as both the employee ($23,000 in 2025, plus $7,500 catch-up if you're 50+) and the employer (up to 25% of compensation). Total contributions can reach $69,000 — or $76,500 with catch-up contributions.

SIMPLE IRA

The SIMPLE IRA is designed for small businesses with employees. If you have employees, this may be worth exploring — but for solo operators, the SEP-IRA or Solo 401(k) typically offers more flexibility.

“Every dollar you contribute to a retirement account is a dollar that reduces your taxable income today — and grows tax-deferred until retirement. It's one of the most powerful tools in the tax code.”

Which One Is Right for You?

• Just starting out or income is variable: SEP-IRA — simple, flexible, no annual filing requirements
• High income, want maximum contributions: Solo 401(k) — higher limits, Roth option available
• Have employees: Consult a professional — your options and obligations change significantly
• Want to make Roth contributions: Solo 401(k) with Roth option is your best bet