Don’t Have a 401(k)?—Here’s How to Get Going on Your Own

You probably know how valuable it is to save for retirement—funding a 401(k) is a popular option. But what can you do if you’re self-employed or your employer doesn’t offer one? Fortunately, you can still open a retirement account as an individual. We’ll walk you through some of the best options, such as traditional IRAs, Roth IRAs, SEP IRAs, self-employed 401(k)s, and defined benefit plans. Plus, we’ll list the contribution limits for each type of account.

Traditional and Roth IRAs

Individual retirement accounts (IRAs) are a popular option that allows you to invest in stocks, bonds, exchange-traded funds (ETFs), and mutual funds. With a traditional IRA, you fund the account with pre-tax dollars, which means you can deduct the contributions from your annual income (reducing your income tax burden for the year). Roth IRAs are funded differently—with after-tax dollars. This means when you withdraw the funds, you won’t owe tax on them. This can be especially valuable if you think you’ll be in a higher tax bracket at retirement.

In order to contribute to either type of IRA, you’ve got to have earned income. Both types of accounts have annual contribution limits that are adjusted each year. For 2025, individuals can contribute a maximum of $7,000, but individuals over age 50 can contribute an additional $1,000.

SEP IRA

A simplified employee pension (SEP) IRA is a type of retirement account that an individual can open and fund, much like a traditional or Roth IRA. However, you can decide if you’d like to fund the account with pre-tax or after-tax dollars. Plus, the contribution limits for a SEP IRA are higher. In 2025, individuals are allowed to contribute the lesser of $70,000 or up to 25% of compensation (with a $350,000 limit).

The contribution limit was the lesser of $69,000 in 2024, or up to 25% of compensation or net self-employment earnings, with a $345,000 limit on compensation that could be used to factor the contribution. In 2025, that limit rises to $70,000, with a $350,000 limit on compensation. 

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is similar to a 401(k) in that you make pre-tax contributions and are taxed upon withdrawal. Again, you can defer up to 100% of your contributions, up to $17,600 in 2025. If you’re over 50, you can contribute an additional $3,500.

SIMPLE IRAs are often used by small businesses since they’re easier for employers to set up and they can offer matching contributions. However, these accounts can also be established by self-employed individuals who are essentially setting up the plan as the “employer.”

Self-Employed 401(k)

A solo-employed 401(k), also called a solo 401(k), is another retirement account that allows you to make pre-tax or post-tax contributions. Of all the options, a self-employed 401(k) is great for just about anyone—high-income earners, occasional gig workers, people contributing with spouses, or those working for employers who don’t offer retirement fund options.

For 2025, the contribution limit for a self-employed 401(k) is $23,500, but individuals over 50 can contribute an additional $7,500.

The Bottom Line

As you can see, just because you don’t have a 401(k) through your job doesn’t mean you don’t have plenty of retirement fund options to choose from. In fact, you can open several of these accounts to diversify your savings. Before you open one (or two), determine how you’d like to fund the account (with pre-tax or after-tax) contributions and select accounts with contribution limits that match your savings goals. When in doubt, speak with a trusted financial advisor, who can help you customize a retirement savings plan.