Navigating the path to retirement might seem less straightforward without access to a 401(k) plan through your employer, particularly if you’re navigating self-employment. Yet, there’s a silver lining with a range of flexible savings options available to ensure your golden years are well-funded.

Universal Savings Options for Everyone

Traditional or Roth IRAs

Both Traditional and Roth IRAs stand as pillars for retirement savings, offering distinct tax advantages that can benefit you in the long term. With the ability to contribute up to $6,000 annually—or $7,000 for those aged 50 and above—these accounts are accessible to anyone earning an income.

Taxable Investment Accounts

Lacking the tax breaks of retirement-specific accounts, taxable investment accounts still provide a viable route for saving without any caps on income or contributions. This flexibility can be particularly valuable for those who’ve maxed out their IRA contributions.

Tailored Options for the Self-Employed

Self-employment brings its own set of retirement planning challenges, but also unique opportunities through accounts like SEP-IRAs, SIMPLE IRAs, and Solo 401(k)s.

SEP-IRA

The SEP-IRA allows for contributions of up to 25% of compensation or $57,000 for 2020, catering to both employees and self-employed individuals. For the self-employed, contributions can be up to 20% of net adjusted income. This plan offers simplicity in setup and flexibility in contributions.

SIMPLE IRA

The SIMPLE IRA supports deferred contributions up to $13,500 (or $16,500 for those over 50) for 2019, with an additional match of up to 3% of earnings. This account needs to be established by October 1st for contributions within the same tax year, offering a straightforward approach with a specific focus on smaller businesses.

Solo 401(k)

The Solo 401(k) is an excellent option for business owners with no employees other than a spouse. Offering higher potential contributions, you can defer up to $19,000 pre-tax or choose a Roth option for the same amount, with an additional $25,000 for individuals over 50, for the tax year 2019. Employer contributions can mirror those of a SEP-IRA, enhancing the potential for substantial savings.

Regardless of your employment status, the landscape of retirement savings is rich with options designed to accommodate a diverse range of financial situations and goals. Whether opting for the broad applicability of an IRA, the tailored benefits of a SEP or SIMPLE IRA, or the high contribution limits of a Solo 401(k), the keys to a secure retirement are well within reach.