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Retirement Planning for Self-Employed Professionals
By Eric Bonnette • Updated 10/31/2025
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Example — freelance designer
Taylor is a self-employed graphic designer who earned $90,000 in 2025.
| Plan | Contribution limit (2025) | Taylor could save | Notes |
|---|---|---|---|
| Solo 401(k) | Up to $23,500 employee deferral + employer portion | ≈ $33,000 | Most flexible if no employees |
| SEP IRA | Up to 25% of income, capped at IRS limit | ≈ $22,500 | Simple, low paperwork |
| SIMPLE IRA | Up to $16,000 + match | ≈ $18,000 | Good if Taylor hires staff later |
If Taylor contributes $22,000, taxable income drops to $68,000 — immediate tax savings.
Retirement Savings Calculator: Project your retirement balance, adjust for inflation, and find your contribution to close the gap. Plan your financial future with confidence. Open Retirement Savings Calculator
Choosing the right plan
- Solo 401(k): Best if you want high limits and flexibility, but requires more forms.
- SEP IRA: Great for simplicity and variable income.
- SIMPLE IRA: Easy to set up if you have employees.
Explore self-employed retirement plan options
Track contributions and deductions automatically in QuickBooks