What retirement accounts are available to self-employed individuals?
Self-employed individuals have several powerful options. (1) Solo 401(k): the most powerful — you contribute as both employee ($23,500 limit in 2025, plus $7,500 catch-up if 50+) and employer (up to 25% of net self-employment income). Total contributions can reach $70,000 in 2025. Roth option available. (2) SEP-IRA: simpler to set up; contributions up to 25% of net SE income or $70,000, whichever is less. No employee contribution component, so smaller contribution for lower-income years. (3) SIMPLE IRA: for self-employed with employees; lower limits. For most solo freelancers and independent contractors, the Solo 401(k) offers the highest possible contribution limits. See wealthserene.com/tools/self-employed-hub for a full comparison.
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