Investing & Retirement

Freelancer’s Guide to Retirement Accounts (SEP IRA, Solo 401k, Roth IRA)

When you work for yourself, nobody’s handing you a 401(k) or matching your contributions. That doesn’t mean you can’t build a strong retirement plan—it just means you need to know your options.

Here are the big three:

• SEP IRA: Easy to set up, lets you save up to 25% of your net income (great for higher earners).

• Solo 401(k): More flexible than a SEP IRA, allows both employer + employee contributions, and Roth option in many cases.

• Roth IRA: After-tax contributions that grow tax-free, but with lower annual limits.

The key takeaway: freelancers can save just as much (or more) than traditional employees—you just have to set up the accounts yourself. In upcoming posts, we’ll break down which option fits best for different income levels.