Why Retirement Planning Matters for Freelancers
Without an employer-sponsored plan, self-employed individuals need to choose a retirement vehicle that offers both savings and tax savings. The right plan can lower taxable income today.
Solo 401(k) Benefits
A Solo 401(k) allows high contribution limits and both employee and employer contributions. This can be especially powerful for self-employed taxpayers with consistent earnings.
SEP IRA Advantages
A SEP IRA is easier to administer and lets you contribute a percentage of your net self-employment income. It works well when income varies from year to year.
SIMPLE IRA for Smaller Businesses
A SIMPLE IRA can be a good choice if you have employees or want a lower-cost setup. It includes employer matching but has lower contribution limits than a Solo 401(k).
How to Choose the Best Plan
Compare contribution limits, administrative complexity, and your projected income. Use our calculators to estimate how each plan affects your take-home pay and tax burden.