Money & Benefits
How to Save for Retirement as a Freelancer
No employer match means no automatic saving — but the accounts available to you are more generous than most employees realize.
Why freelancers must save for themselves
No employer means no automatic 401(k) enrollment and no employer match — every dollar saved for retirement is a decision you have to make yourself, on a schedule you have to set yourself. That's a real gap compared to traditional employment, but it also comes with more flexibility in how much and where you save.
SEP-IRA: how it works and contribution limits
A SEP-IRA lets you contribute roughly 20% of your net self-employment income, up to a combined cap of $72,000 for 2026 (shared with any Solo 401(k) contributions). It's simple to set up and maintain, with contributions made entirely by you as the "employer" — there's no employee deferral portion.
Solo 401(k): best for high earners (and lower earners too)
A Solo 401(k) has two contribution buckets: an employee deferral (up to $24,500 in 2026) and an employer contribution (roughly 20% of net self-employment income), sharing the same overall $72,000 cap as a SEP-IRA. Because of the employee deferral portion, a Solo 401(k) usually allows a much larger contribution than a SEP-IRA at lower income levels — often nearly double.
Catch-up contributions add more room if you're 50 or older: an additional $8,000 for ages 50-59 and 64+, or an enhanced $11,250 for ages 60-63.
Traditional and Roth IRA
Separate from SEP-IRA and Solo 401(k), a Traditional or Roth IRA allows an additional $7,500 in contributions for 2026 ($8,600 if 50 or older). Roth contributions use after-tax dollars but grow tax-free — a useful complement if you expect to stay in a similar or higher tax bracket in retirement.
Know your income before deciding how much to save
Calculate your real take-home pay after tax first.
Go to the free calculatorHow much to save each month
There's no universal number, but contributing consistently — even a modest, sustainable amount — outperforms waiting for a "big year" that may or may not come. Automating the contribution, the same way a paycheck deduction would, removes the decision from each month's discretion.
Where to open an account
Major brokerages (Fidelity, Vanguard, Schwab, and others) offer no-fee SEP-IRA and Solo 401(k) accounts for self-employed individuals, with straightforward online setup.