• Allows up to 25% of net self-employment income, capped at tens of thousands per year
• Ideal for profitable variable-income years
• Employer-funded, must include all Gig Employees
• Max contribution up to 25% of compensation up to $70,000
Solo 401(k)
• Lets you contribute as both "employer" and "employee," with limits far higher than a regular IRA
• Highest potential savings for Solo Self-Employed up to $70,000
• Additional catch-up $7,500
• Addition $66,253
• Ages 60-63 (via SECURE 2.0)
SIMPLE IRA
• Easier for small businesses with few employees, offering lower costs and straightforward administration
• Easy to use with Employer involvement
• Lower cap than 401k
• Employee deferral up to $16,500
• Catch-up $3,500
• Ages 60-63
• $5,250 (enhanced catch-up)
Take advantage of the Flexibility & High Contribution Limits Solo 401(k): Lets you contribute as both "employer" and "employee," with limits far higher than a regular IRA. SEP IRA: Allows up to 25% of net self-employment income, capped at tens of thousands per year. SIMPLE IRA: Easier for small businesses with few employees, offering lower costs and straightforward administration.
SECURE Act 2.0 for Self-Employed
The SECURE Act 2.0 includes provisions that directly benefit self-employed individuals,
particularly those using retirement plans like SEP IRAs, SIMPLE IRAs, or solo 401(k)s. Here's
how it applies:
1. Roth Options for SEP and SIMPLE IRAs
•Self-employed individuals using SEP or SIMPLE IRAs can now elect to make contributions on a Roth (after-tax) basis.
•These are known as Roth SEP IRAs or Roth SIMPLE IRAs.
•Effective for taxable years beginning after December 31, 2022.
•Contributions may grow tax-free, and qualified withdrawals are tax-free.
2. Retroactive Solo 401(k) Contributions
•Sole proprietors can now set up a solo 401(k) in 2025 and make contributions retroactively for the 2024 tax year.
•Includes both elective deferrals (employee contributions) and employer contributions.
•A powerful option for maximizing tax-advantaged savings.
3. Expanded Catch-Up and Roth Matching Flexibility
•Designated Roth employer contributions (matching or nonelective) are now permitted in certain plan types.
•Provides more flexibility for structuring contributions, even if you are both employer and employee.
Complex laws don't have to mean complex choices—Secure Act 2.0 simplifies the path for business owners to attract, retain, and reward their workforce. With Secure Act 2.0, the question isn't 'Can I afford to offer retirement benefits?'—it's 'Can I afford not to?'
Starting From Zero? You're Not Alone
If you're starting from zero retirement savings, you're not alone — and it's never too late to build a plan.
The right options depend on your age, income, and goals. Here are the main strategies:
1. Get Organized
•Assess your situation: Look at income, expenses, debts, and how many years until you'd like to retire.
•Budget for savings: Even small amounts add up with consistency and growth.
2. Retirement Account Options
If you're self-employed or working for someone else, you can still use powerful tools:
Traditional IRA
•Contribute up to $7,000/year (or $8,000 if 50+) in 2025.
•Same limits as Traditional, but contributions are after-tax.
•Withdrawals in retirement are tax-free.
401(k) / Solo 401(k)
•If employed, contribute through your employer (max $23,000, or $30,500 if 50+).
•If self-employed, a Solo 401(k) lets you contribute as both employee and employer — much higher limits.
SEP IRA (Self-Employed)
•Easy to set up, allows up to 25% of income (capped around $70,000).
Fixed Indexed Annuities (FIAs) / Roth Annuities
•Provide lifetime income, protect against market losses, and can be tax-advantaged.
3. Catch-Up Contributions
If you're 50 or older, the IRS allows extra "catch-up" savings:
•IRA: +$1,000 more each year.
•401(k): +$7,500 more each year.
•This lets you turbocharge savings even if you're late starting.
4. Protect & Grow
•Avoid high-interest debt first (like credit cards).
•Invest smart: Balanced portfolios, annuities, or indexed accounts protect you from starting over after a market crash.
•Think tax-free: Roth IRAs, Roth 401(k)s, or IULs can keep future income IRS-free.
5. Create Income Streams
•Delay Social Security: Each year you wait past 62 increases your lifetime benefit (up to age 70).
•Part-time or side hustle: Can add extra years of saving and reduce withdrawals.
•Real estate or business income: Build alternative retirement cash flow.
Bottom line: Even if you haven't saved yet, you can still build a plan by starting small, using tax-advantaged accounts, catching up if you're 50+, and creating additional income streams. "It's never too early to create a plan"
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