Solo 401(k) or SEP-IRA?

Solo 401(k) is usually better: higher effective contribution limits, Roth option, loan provisions. SEP-IRA is simpler to administer and a good choice if you have employees (since employees must get the same percentage contribution).

I have variable income. How do I plan?

Build an estimated tax + retirement bucket: each invoice paid, sweep 30-40% to a separate account that funds quarterly taxes and retirement contributions. Treat retirement as a fixed expense, not a leftover.

Can I deduct health insurance for retirement planning?

Self-employed health insurance premiums are an above-the-line deduction. After 65, switching to Medicare changes the math — model both phases separately.

By profession · Self-employed

Retirement planning for self-employed and 1099 workers

A profession-specific look at the retirement levers a self-employed actually has — pension rules, tax-advantaged accounts, and the Social Security wrinkles unique to your job.

Last reviewed May 4, 2026

Editorial review pending — see editorial process

The retirement landscape for a self-employed

Pension

None — you're the employer and the employee. The full retirement plan is your responsibility.

Tax-advantaged accounts

The Solo 401(k) is the most powerful option for high-earners — it allows both employee deferral ($23,500 in 2026) AND employer profit-sharing (up to 25% of compensation), capped at $70,000 combined. The SEP-IRA is simpler but caps lower for most people.

Social Security

Self-employed workers pay both halves of Social Security tax (15.3%) on net self-employment earnings. The trade-off is that all of it builds your eventual benefit.

Run the calculator with a typical self-employed starting point

Pre-filled: age 42, savings $145,000. Adjust to your actual numbers from there.

Run my numbers →

Frequently asked

Solo 401(k) or SEP-IRA?
Solo 401(k) is usually better: higher effective contribution limits, Roth option, loan provisions. SEP-IRA is simpler to administer and a good choice if you have employees (since employees must get the same percentage contribution).
I have variable income. How do I plan?
Build an estimated tax + retirement bucket: each invoice paid, sweep 30-40% to a separate account that funds quarterly taxes and retirement contributions. Treat retirement as a fixed expense, not a leftover.
Can I deduct health insurance for retirement planning?
Self-employed health insurance premiums are an above-the-line deduction. After 65, switching to Medicare changes the math — model both phases separately.

Primary sources

Every profession-specific rule above traces to one of these primary sources. We re-verify each link annually; current as of the last-reviewed date below.