I'm self-employed. What are the best retirement savings options for me?

If you're self-employed in the U.S., the main retirement accounts to look at are a Solo 401(k), SEP-IRA, SIMPLE IRA, and traditional/Roth IRA. The right combination depends mostly on your income, whether you have employees, and how much you want to save.

The main options

The 2026 limits above come from the IRS.

Why I'd look closely at a Solo 401(k)

For a self-employed person with no employees, a Solo 401(k) is often particularly flexible because you're effectively both the employee and employer. You can make an employee deferral and an employer contribution, potentially allowing substantially more retirement savings than an IRA alone.

There is an important wrinkle: calculating the self-employed person's contribution isn't simply "X% of Schedule C profit." The IRS requires adjustments for self-employment tax and your retirement contribution itself.

If you're 60–63, there's also a higher 2026 401(k) catch-up limit of $11,250 rather than the standard $8,000.

When a SEP-IRA may make more sense

A SEP is extremely straightforward. You can contribute up to 25% of eligible compensation, subject to the $72,000 2026 maximum. Unlike a 401(k), though, a SEP doesn't let you make the separate employee salary-deferral contribution.

One important consideration: if you have eligible employees, generally you must contribute the same percentage of compensation for them as you contribute for yourself.

A practical priority order

For many self-employed people, a reasonable framework is:

1. Get an employer match if you also have access to one through another job.
2. Consider a Solo 401(k) if you're eligible and want to save substantial amounts.
3. Consider a Roth IRA if you're eligible and value tax-free qualified withdrawals.
4. Put additional retirement savings into the Solo 401(k)/SEP as appropriate.
5. Keep an emergency/business cash reserve separate from retirement money.

The IRA limit is shared between your traditional and Roth IRAs—it's $7,500 total in 2026, not $7,500 in each.

If you tell me (1) your approximate annual self-employment profit, (2) your age, (3) whether you have employees, and (4) whether you're a sole proprietor, LLC, or S-corp, I can show you the approximate maximum you could contribute under each option and the potential tax advantages.

For a self-employed person with no employees, a Solo 401(k) is often particularly flexible because you're effectively both the employee and employer. You can make an employee deferral and an employer contribution, potentially allowing substantially more retirement savings than an IRA alone.

There is an important wrinkle: calculating the self-employed person's contribution isn't simply "X% of Schedule C profit." The IRS requires adjustments for self-employment tax and your retirement contribution itself.

If you're 60–63, there's also a higher 2026 401(k) catch-up limit of $11,250 rather than the standard $8,000.

When a SEP-IRA may make more sense

A SEP is extremely straightforward. You can contribute up to 25% of eligible compensation, subject to the $72,000 2026 maximum. Unlike a 401(k), though, a SEP doesn't let you make the separate employee salary-deferral contribution.

One important consideration: if you have eligible employees, generally you must contribute the same percentage of compensation for them as you contribute for yourself.

A practical priority order

When you're self-employed, you don't have an HR department setting up a 401(k), but you have access to powerful tax-advantaged accounts that often allow you to save more than traditional employees.

The best option depends on whether you have employees (other than a spouse) and how much you want to contribute.

Top Retirement Plans for the Self-Employed

• Solo 401(k) (Individual 401(k)) — Best for solo business owners with no employees.
  • How it works: You act as both the employee and the employer. As the employee, you can defer up to $24,500 pre-tax or Roth dollars in 2026. As the employer, you can add up to an additional 25% of your net self-employment earnings.
  • Limits: Total combined contributions can reach up to $70,000 (plus catch-up contributions if you are 50 or older).
  • Pros: Massive contribution potential, Roth options, and you can borrow against it (take a loan) if needed.
  • Cons: Requires setting up a formal plan document; must file IRS Form 5500-EZ once assets exceed $250,000.
• SEP-IRA (Simplified Employee Pension) — Best for simplicity and high, flexible limits.
  • How it works: Only the employer contributes. You can contribute up to 25% of your net earnings from self-employment (with specific calculation adjustments).
  • Limits: Up to $70,000 for 2026 (matching the overall defined contribution limit).
  • Pros: Incredibly easy to set up and maintain with major brokerages (like Fidelity Learning Center or Vanguard). You don't have to contribute every year—great if your income fluctuates.
  • Cons: If you have employees, you must contribute the exact same percentage of salary for them as you do for yourself.
• SIMPLE IRA — Best for small businesses with employees.
  • How it works: Designed for businesses with up to 100 employees. Employees make salary-reduction contributions, and the employer must either match up to 3% or make a 2% non-elective contribution.
  • Limits: Employee contribution limit is $16,500 in 2026 (higher if age 50+).
  • Pros: Lower administrative burden than a standard corporate 401(k).
  • Cons: Lower contribution caps than a Solo 401(k) or SEP-IRA.
• Traditional or Roth IRA — Best as a supplement or for lower/variable income years.
  • Limits: Standard IRA contribution limits apply.
  • Pros: Very easy to open and fund.
  • Cons: Low annual contribution limits compared to Solo 401(k) or SEP-IRA; income phaseouts may limit Roth contributions or Traditional IRA tax deductions if you have higher income.

Which one should you pick?

• If you are a freelancer, consultant, or solo operator with no W-2 employees: Open a Solo 401(k) for the highest contribution limits and Roth flexibility.
• If you want something set-and-forget with minimal paperwork and variable cash flow: A SEP-IRA is usually the easiest path.

To help narrow down the exact right fit, tell me:

• Do you have any employees , or are you completely solo?
• Roughly how much are you looking to save per year?
• Do you prefer pre-tax (tax deduction now) or Roth (tax-free growth/withdrawals later)?

As a self-employed person, you have access to some of the highest contribution limits and most flexible tax-advantaged accounts available. The right choice depends on whether you have employees, your income level, and how much administrative setup you want to handle.

Review the primary options for self-employed retirement savings:

1. Solo 401(k) (Individual 401(k) / Solo-k)

• Best for: Solopreneurs and business owners with no employees (except a spouse).
• How it works: You wear two hats—both employer and employee. As the employee, you can defer up to $23,500 (plus catch-up contributions if you're 50+). As the employer, you can add an additional profit-sharing contribution of up to 25% of your net self-employment earnings.
• Why choose it: It offers the highest contribution ceilings overall, and you can structure it as traditional (pre-tax) or Roth.

1. SEP-IRA (Simplified Employee Pension)

• Best for: Self-employed individuals who want maximum simplicity and high contribution limits with minimal paperwork.
• How it works: Only the employer contributes. You can contribute up to 25% of your net earnings from self-employment (up to annual IRS limits).
• Why choose it: Extremely easy to set up and maintain through major brokerages. Keep in mind: if you have employees, a SEP-IRA requires you to contribute the exact same percentage of salary for them as you do for yourself.

1. SIMPLE IRA (Savings Incentive Match Plan for Employees)

• Best for: Small business owners who have a small team of employees and want a straightforward structure.
• How it works: Employees can make elective salary deferrals, and the employer is required to make either a matching contribution (up to 3%) or a 2% non-elective contribution for all eligible staff.
• Why choose it: Lower administrative burden than a standard corporate 401(k), but built explicitly to accommodate staff.

1. Traditional or Roth IRA

• Best for: Supplemental savings or starting out when self-employed income is lower or irregular.
• How it works: Anyone with earned income can contribute up to the standard annual individual IRA limits.
• Why choose it: Super simple to open anywhere, though the contribution caps are much lower than a Solo 401(k) or SEP-IRA. You can also combine a personal IRA with a Solo 401(k) or SEP.

You can review official guidelines directly on the IRS Retirement Plans for Self-Employed People page.

To help narrow down which plan fits your business best, tell me:

• Do you have any employees (other than a spouse)?
• What is your approximate annual net self-employment income?
• Are you looking to minimize taxes now (pre-tax) or tax-free withdrawals later (Roth)?

For most self-employed people, a Solo 401(k) is the best all-around choice, especially if you have no employees other than a spouse.

• Solo 401(k): Lets you contribute as both employee and employer; 2026 employee deferral is $24,500, plus potential employer contributions, with total contributions generally up to $72,000 before catch-ups.
• SEP-IRA: Extremely simple and flexible; contributions can reach $72,000 in 2026, but there are no employee salary deferrals.
• SIMPLE IRA: Useful if you have employees, but generally less attractive for a solo business because of lower contribution limits and mandatory employer contributions.
• Traditional/Roth IRA: Good supplemental accounts; the 2026 IRA limit is $7,500 ($8,600 if 50+).

Rule of thumb: Solo business + no employees → Solo 401(k). Simplicity/flexibility → SEP-IRA. Employees → consider SIMPLE IRA or a 401(k).

If you tell me your age, approximate annual business profit, whether you have employees, and whether you're a sole proprietor/LLC/S-corp, I can compare the options and estimate how much you could contribute.

As a self-employed individual, you have powerful retirement options that often allow you to save far more than standard corporate employees. The best choice depends on whether you have employees, how much you earn, and whether you want access to Roth (after-tax) options.

The top retirement savings options for the self-employed include:

1. Solo 401(k) (Individual 401(k))
   • Best for: Solopreneurs and business owners with no employees (except a spouse).
   • 2026 Contribution Limits: Up to $72,000 total ($80,000 if you're 50–59 or 64+, and up to $83,250 if you're 60–63).
   • How it works: You contribute in two roles—as the employee (up to $24,500 in 2026) and as the employer (up to 25% of your net self-employment earnings). It offers high limits, Roth flexibility, and allows loan options if structured correctly.
   • Learn more: Check details on Fidelity's Solo 401(k) Guide.
2. SEP IRA (Simplified Employee Pension)
   • Best for: Self-employed individuals who want maximum simplicity with high contribution ceilings , or those who have a few employees (note: if you have employees, you must contribute the same percentage for them as you do for yourself).
   • 2026 Contribution Limits: The lesser of $72,000 or up to 25% of your net self-employment earnings.
   • How it works: Very easy to set up via IRS Form 5305-SEP or major brokerages. Contributions are made entirely by you as the employer. You have until your tax-filing deadline (plus extensions) to fund it for the prior year.
   • Learn more: Read the IRS Overview of Self-Employed Plans.
3. SIMPLE IRA
   • Best for: Self-employed people with a small team of employees where you want a low-cost plan that mandates employer matching.
   • 2026 Contribution Limits: Employee elective deferrals up to $17,000 , plus mandatory employer matching contributions (either a 2% non-elective contribution or up to a 3% matching contribution).
   • How it works: Administrative costs are low, but you are legally required to provide matching contributions for eligible staff.
4. Traditional or Roth IRA
   • Best for: Beginners, part-time freelancers, or as a supplemental option if your income is lower or you've already maxed out other vehicles.
   • 2026 Contribution Limits: $7,000 (plus $1,000 catch-up if age 50+).
   • How it works: Extremely easy to open anywhere, though income phase-outs may apply if you want to deduct Traditional IRA contributions while covered by another plan.

To help narrow down which choice fits your setup best, tell me:

• Do you have any employees (other than yourself or a spouse)?
• What is your approximate net self-employment income?
• Do you prefer pre-tax deductions now or tax-free growth (Roth) later?

If you're self-employed in the U.S., the best retirement account is usually a Solo 401(k) if you have no employees other than a spouse. A SEP-IRA is often the simplest alternative, while a SIMPLE IRA can make sense if you have employees.

Here’s how I’d compare them for 2026:

The IRS confirms the 2026 401(k) employee deferral limit is $24,500 and the overall defined-contribution limit is $72,000; Solo 401(k)s let you contribute in both an employee and employer capacity.

1. Solo 401(k) — my default choice

If you're a freelancer, consultant, contractor, or business owner with no non-spouse employees, this is usually the most flexible option.

You can make:

• An employee contribution of up to $24,500 in 2026.
• An additional employer/profit-sharing contribution based on your self-employment income.
• Total contributions can generally reach $72,000 in 2026, before eligible catch-up contributions.

You can potentially choose traditional/pre-tax and/or Roth contributions depending on the plan.

2. SEP-IRA — simplest

A SEP is extremely easy to administer and is particularly attractive if your income varies substantially from year to year.

For 2026, the maximum contribution is $72,000, generally limited to 25% of compensation. For self-employed people, the calculation is more complicated than simply taking 25% of Schedule C profit.

The big disadvantage versus a Solo 401(k): SEP-IRAs don't permit regular employee salary deferrals, so at moderate income levels you may be able to save considerably more with a Solo 401(k).

3. SIMPLE IRA — mainly if you have employees

A SIMPLE IRA permits employee contributions of up to $17,000 in 2026, plus employer contributions. But employers generally have to provide either a matching contribution or a nonelective contribution to eligible employees.

So I wouldn't generally choose this for a one-person business when a Solo 401(k) is available.

4. Traditional or Roth IRA — useful supplement

Regardless of your business retirement plan, an IRA can be useful.

For 2026, you can contribute $7,500 across your traditional and Roth IRAs, or $8,600 if you're 50 or older.

A Roth IRA can be particularly valuable if you expect your tax rate to be higher in retirement, although income limits can restrict direct Roth contributions.

What I'd choose

A rough rule of thumb:

• No employees + want to maximize retirement savings → Solo 401(k)
• No employees + prioritize simplicity → SEP-IRA
• Have employees → SIMPLE IRA or a more sophisticated 401(k)
• Want additional tax diversification → add an IRA where appropriate

One important wrinkle: your actual Solo 401(k)/SEP contribution depends on your net self-employment income, and the IRS uses special calculations that account for self-employment tax and your retirement contribution.

If you tell me (1) your approximate annual business profit, (2) your age, (3) whether you have employees, and (4) whether you're a sole proprietor/LLC/S-corp, I can show you which option would likely let you contribute the most and the approximate tax savings.

3. SIMPLE IRA — mainly if you have employees

A SIMPLE IRA permits employee contributions of up to $17,000 in 2026, plus employer contributions. But employers generally have to provide either a matching contribution or a nonelective contribution to eligible employees.

So I wouldn't generally choose this for a one-person business when a Solo 401(k) is available.

4. Traditional or Roth IRA — useful supplement

Regardless of your business retirement plan, an IRA can be useful.

For 2026, you can contribute $7,500 across your traditional and Roth IRAs, or $8,600 if you're 50 or older.

A Roth IRA can be particularly valuable if you expect your tax rate to be higher in retirement, although income limits can restrict direct Roth contributions.

What I'd choose

A rough rule of thumb:

• No employees + want to maximize retirement savings → Solo 401(k)
• No employees + prioritize simplicity → SEP-IRA
• Have employees → SIMPLE IRA or a more sophisticated 401(k)
• Want additional tax diversification → add an IRA where appropriate

One important wrinkle: your actual Solo 401(k)/SEP contribution depends on your net self-employment income, and the IRS uses special calculations that account for self-employment tax and your retirement contribution.

As a self-employed individual, you have some of the most powerful retirement savings tools available. Because you act as both the "employee" and the "employer," you can often stash away significantly more money—and get larger tax breaks—than a standard corporate employee.

The best options depend on whether you have employees, how much you earn, and how much administrative work you want to handle.

1. Solo 401(k) (Individual 401(k))

Best for: Sole proprietors, freelancers, and partnerships with no employees (except a spouse).

A Solo 401(k) lets you contribute in two capacities: as the employee (salary deferral) and as the employer (profit-sharing).

• 2026 Contribution Limits: You can defer up to $24,500 as an employee. Plus, you can add up to 25% of your net self-employment earnings as an employer contribution (or 20% if you are a sole proprietor/single-member LLC filing Schedule C).
• Total Cap (2026): Up to $72,000 combined. If you are 50 or older, you get an extra $8,000 catch-up contribution (bringing it to $80,000), and higher catch-up limits apply if you are aged 60–63.
• Pros: Massive contribution limits; option for Roth (after-tax) employee contributions; can borrow against it via participant loans.
• Cons: Cannot have regular W-2 employees; requires opening the account and setting it up before the end of the tax year you want to contribute for (though contributions can be made up until your tax filing deadline).

2. SEP-IRA (Simplified Employee Pension)

Best for: Self-employed people who want a dead-simple setup or who have a fluctuating income.

A SEP-IRA functions similarly to a traditional IRA but with dramatically higher contribution ceilings.

• 2026 Contribution Limits: Up to 25% of your net earnings from self-employment, capped at $70,000.
• Pros: Extremely easy to set up and maintain with virtually no annual IRS paperwork. You don’t have to fund it until your tax filing deadline (including extensions), making it great if you don't know your exact annual profit until tax time.
• Cons: If you have employees, a SEP-IRA requires you to contribute the exact same percentage of compensation for them as you contribute for yourself, which can get expensive. No Roth option available.

3. SIMPLE IRA (Savings Incentive Match Plan for Employees)

Best for: Small business owners with a small team of employees who want a low-cost retirement plan.

• 2026 Contribution Limits: Employees can defer up to $17,000, with catch-up contributions of $4,000 for ages 50–59. As the employer, you must either match up to 3% of compensation or make a fixed 2% non-elective contribution for eligible employees.
• Pros: Easier and cheaper to administer than a standard group 401(k); great for offering benefits to a small staff.
• Cons: Lower contribution caps than a Solo 401(k) or SEP-IRA; mandatory employer contributions mean you must pay into your employees' accounts.

4. Traditional or Roth IRA

Best for: Supplementary savings or lower/starting income years.

• 2026 Limits: Standard IRA limits apply (typically $7,000 plus catch-up if older).
• Pros: Anyone with earned income can contribute. Roth IRAs offer tax-free growth and tax-free withdrawals in retirement.
• Cons: Low contribution limits compared to the business-specific options above. Income phase-outs may limit your ability to deduct traditional IRA contributions if you're covered by another plan.

To help narrow down the ideal choice, let me know:

• Do you have any employees (other than yourself or a spouse)?
• What is your estimated annual net income?
• Do you prefer immediate tax deductions now (Traditional) or tax-free withdrawals later (Roth)?

If you're self-employed in the U.S., you have several excellent retirement options. For many solo business owners, a Solo 401(k) is the best all-around choice, but a SEP-IRA can be simpler and a defined-benefit plan can be powerful at very high incomes.

The main options

1. Solo 401(k) — usually my first choice

If you have no employees other than yourself and possibly your spouse, a one-participant 401(k) lets you contribute in two capacities: as the employee and as the employer.

For 2026, the employee elective-deferral limit is $24,500, while the employer can generally contribute an additional amount based on your self-employment income.

That makes it particularly attractive if you're trying to save aggressively.

You can also potentially choose Roth 401(k) contributions for the employee portion, depending on the plan.

Best when: you're a freelancer, consultant, contractor, or owner-only business with relatively strong income.

2. SEP-IRA — simplest high-contribution option

A SEP is extremely straightforward. In 2026, contributions can be up to the lesser of 25% of compensation or $72,000.

The big downside is that you don't get employee salary-deferral contributions like you do with a 401(k).

A SEP can be particularly attractive if your income fluctuates and you want the flexibility to decide how much to contribute each year.

Best when: simplicity matters more than maximizing contributions.

3. SIMPLE IRA — mainly if you have employees

A SIMPLE IRA allows employee contributions of up to $17,000 in 2026, plus required employer contributions. The employer generally chooses either a matching contribution or a nonelective contribution.

It's relatively easy to administer, but it generally isn't as attractive as a Solo 401(k) for a one-person business.

4. Traditional or Roth IRA — excellent supplement

You can also have an IRA alongside your business retirement plan. For 2026, the combined contribution limit for traditional and Roth IRAs is $7,500, or $8,600 if you're 50 or older.

A Roth IRA is especially useful because qualified withdrawals in retirement are tax-free. Whether you're eligible to contribute directly depends on your income.

5. Cash-balance/defined-benefit plan — for high earners

If your business produces consistently high income and you're willing to deal with considerably more complexity, a defined-benefit or cash-balance plan can allow retirement contributions far beyond what a SEP or Solo 401(k) typically provides.

This is something I'd discuss with a CPA/retirement-plan actuary rather than setting up casually.

What I'd consider first

For a typical self-employed person:

Moderate income → Solo 401(k) + Roth IRA if eligible.

High income → Solo 401(k), potentially supplemented with a cash-balance plan.

Highly variable income / maximum simplicity → SEP-IRA.

You have employees → SIMPLE IRA, SEP, or a regular 401(k), depending on the circumstances.

One important wrinkle: your business structure and how much you earn matter a lot. For a sole proprietor, the IRS uses a special calculation for "earned income" when determining Solo 401(k) contributions, including deductions for half of self-employment tax and your own retirement contribution.

If you tell me (1) your approximate annual self-employment profit, (2) your age, (3) whether you have employees, and (4) whether you're a sole proprietor, LLC, or S-corp, I can show you which option is likely best and roughly how much you could contribute and deduct in 2026.

When you are self-employed, you don't have an employer to match your contributions or set up a plan for you—but you have a massive advantage: you act as both the employee and the employer , which unlocks much higher contribution limits than standard workplace plans.

The best options for self-employed individuals depend on whether you have employees and how much administrative work you want to handle.

1. Solo 401(k) (Individual 401k / Solo k)

• Best for: Self-employed individuals with no employees (other than a spouse).
• How it works: You can contribute in two capacities: as the employee (elective deferrals) and as the employer (nonelective contributions).
• Contribution Limits (2026): Up to $70,000 total, or $77,500 if you are age 50 or older (with catch-up contributions). Employee elective deferrals are capped at standard 401(k) employee limits, while employer contributions can add up to 25% of your net self-employment earnings (or compensation).
• Pros: Massive contribution potential; allows for Roth (after-tax) contributions if your provider supports it; you can often borrow against it (participant loans).
• Cons: Requires an EIN and a bit more initial paperwork to set up than a traditional IRA. Employee salary-deferral portions technically need to be designated by the end of the calendar year, though employer portions can be funded up to your tax filing deadline.
• Where to open: You can check options with top brokerages like the Fidelity Small-Business Retirement Plans, Charles Schwab Individual 401(k) , or E*TRADE Solo 401k.

2. SEP IRA (Simplified Employee Pension)

• Best for: Self-employed people who want ultimate simplicity , or those who have a few regular employees.
• How it works: Only the employer contributes to a SEP IRA. If you are a sole proprietor, you contribute a percentage of your net self-employment earnings (roughly up to 20%, or 25% if structured as an S-corp/C-corp).
• Contribution Limits (2026): Up to $72,000 or 25% of compensation, whichever is less.
• Pros: Incredibly easy to set up and maintain with practically zero ongoing annual paperwork. You have all the way until your tax-filing deadline (including extensions) to fund it for the previous tax year.
• Cons: If you have employees, you must contribute the exact same percentage of salary for them that you contribute for yourself, which can get expensive. It also doesn't allow employee-level catch-up contributions or Roth options.

3. SIMPLE IRA (Savings Incentive Match Plan for Employees)

• Best for: Small businesses with 1 to 100 employees where you want to offer a basic plan with mandatory matching.
• How it works: Employees can defer a portion of their salary, and the employer is required to make either a matching contribution (up to 3%) or a non-elective contribution (2% for all eligible employees).
• Contribution Limits (2026): Employee contribution limits are lower than a Solo 401(k)—capped at $16,500 (plus an extra amount if you're 50+).
• Pros: Easier and cheaper to set up than a full group 401(k) if you have a growing team.
• Cons: Lower contribution caps; mandatory employer matching adds fixed business costs.

If you tell me:

• Do you have any employees (other than a spouse)?
• What is your preferred business structure (sole proprietorship, LLC, S-Corp)?
• Are you looking for pre-tax deductions now or tax-free growth (Roth) later?

I can help you pinpoint the exact ideal plan for your situation.

If you're self-employed in the U.S., you have several excellent retirement options. For many solo business owners, the Solo 401(k) is the strongest all-around choice, but the right answer depends on your income, age, employees, and whether you want Roth contributions.

Best options

1. Solo 401(k) — my default choice for a solo business

You get to contribute in two capacities: as the employee and as the business owner. In 2026, the employee contribution limit is $24,500, and you can generally add an employer contribution based on your self-employment income.

The big advantage is that you can potentially put away substantially more than you could with an IRA, particularly when your business income is moderate-to-high. A Solo 401(k) can also offer a Roth component, depending on the plan provider.

It's available when you have no employees other than yourself and, generally, your spouse.

2. SEP-IRA — simplest high-contribution option

A SEP is extremely easy to administer and can allow contributions of up to 25% of compensation, capped at $72,000 in 2026.

The downside is that you don't get the employee salary-deferral feature of a Solo 401(k). So at lower-to-moderate business income, a Solo 401(k) can often let you save more.

A SEP can be particularly attractive if you want something straightforward and don't need Roth contributions.

3. SIMPLE IRA — useful if you have employees

For 2026, employee contributions are generally limited to $17,000, with additional catch-up contributions for eligible older workers. Employers generally have to provide either a matching contribution or a 2% nonelective contribution.

It's relatively easy to operate, but if you're truly a one-person business, I'd generally look at a Solo 401(k) first.

4. Traditional or Roth IRA — excellent supplement

You can contribute up to $7,500 in 2026, or $8,600 if you're 50 or older. That limit applies collectively to your traditional and Roth IRAs.

A Roth IRA is especially valuable if you're eligible because qualified withdrawals in retirement can be tax-free. For 2026, direct Roth IRA contributions phase out at $153,000–$168,000 of income for single filers and $242,000–$252,000 for married filing jointly.

What I'd generally consider

If you're self-employed with no employees, a common strategy is:

Solo 401(k) → Roth IRA if eligible → additional taxable investing

The Solo 401(k) gives you substantial tax-advantaged capacity, while the Roth IRA gives you a separate pool of potentially tax-free retirement money.

One important wrinkle: calculating your Solo 401(k) or SEP contribution as a self-employed person isn't as simple as taking a percentage of your Schedule C profit. The IRS requires adjustments for self-employment tax and your own retirement contribution.

If you tell me (1) your approximate annual self-employment profit, (2) your age, (3) whether you're a sole proprietor/LLC/S-corp, (4) whether you have employees, and (5) whether you already have an IRA or 401(k), I can show you exactly which option is likely to let you save the most and give you an approximate 2026 contribution amount and tax impact.