If you have chosen to be self-employed, you have already committed to a unique pathway, given that only 10% of the US workforce falls into that labor category. So why should your retirement planning be any different – why wouldn’t you connect your current lifestyle with a personalized vision for your retirement years? Why “be like everyone else” and accept a standardized conception of retirement planning?
Discover Personalized Retirement Plans for Self Employed Professionals with IPF
At Iron Point Financial, we know what it takes to work with out-of-the-box retirement planning requests, including those from self-employed individuals. As Greg Liszka (CFP®, RICP®), President & Advisor likes to let our clients know upfront:
“We try to do it a little differently. Many financial advisors don’t want to think outside the box: typically, everybody gets the same thing. But that’s what we fight against with every part of our being. There are so many avenues out there that just take a lot more research and time to understand, once you can grasp them.”
The point being: our goal is always to tailor our suggestions to your unique dreams and lifestyle choices, even where that means a bit more research and work on our end. And when we say “unique dreams,” we mean it. Consider the following, real-world example:
“We had a couple come in last year. He retired, and they bought a camper! They want an experience, and that’s a very inexpensive way (after you buy the camper and a vehicle to pull it) to travel here and there, finding campgrounds for sixty bucks a night. They clearly see that camper van as an asset. They’re thinking, ‘We’re going to use it to travel, to go all over the country.’ Fantastic. Now, it’s our job to make that happen for them.”
Whatever your goal is, and whatever lifestyle you have chosen, it’s our mission to help you construct a roadmap that will get you moving in the right direction. With that in mind, let’s dive into what we believe are the simplest, most suitable retirement plans for the self-employed.
K.I.S.S. – 4 Effective Retirement Plans for Self Employed Individuals
If you’re looking for effective retirement plans for self employed individuals, we believe you should start by asking exactly what “effective” could mean for you.. As you might have guessed from our introduction, we reckon that “effective” in the present context means tailored to your unique circumstances.
So although the following is a straightforward list of retirement plans for self employed individuals from a bare-bones, practical perspective, we would encourage you to apply a personalized approach to whatever option you ultimately choose (e.g. by asking yourself: “Does this plan sound like something I can commit to? Does it fit with my current situation?”).
With that said, here are the four simplest retirement vehicles out there, each featuring its own unique benefits and drawbacks (bonus points for any eagle-eyed readers who can guess why we titled this section K.I.S.S. — let us know in the comments section at the end).
1. Traditional or Roth IRAs
How to Sign Up and Contribute: IRAs (Individual Retirement Accounts) are relatively easy to establish through banks, brokerage firms, or financial advisors (we have helped countless clients set these up, which is why they are the first option on our list). Self-employed individuals can contribute up to the annual limit ($7,000 for those under 50 and $8,000 for those 50 and older, as of 2025).
Pros:
- Relatively easy and quick to set up (especially with help from a financial advisor).
- They come with great tax advantages (Traditional IRA contributions can be tax-deductible, while any Roth IRA contributions grow entirely tax-free).
- They both provide flexible investment options (i.e. you can request that your IRA portfolio be tailored to your unique values).
Cons:
- The contribution limits are relatively low compared to other retirement plans.
- Income limits apply for Roth IRA contributions and Traditional IRA tax deductions.
2. SIMPLE IRAs
How to Sign Up and Contribute: Self-employed individuals and small business owners (i.e. a business owner who has fewer than 100 employees) can establish SIMPLE IRAs through a bank, brokerage, or financial advisor. The contribution limit for 2025 is $16,500, with a catch-up of $3,500 for most individuals 50 and over (as of 2025, some SIMPLE plan participants over 50 have even higher contribution limits).
Pros:
- SIMPLE IRAs have higher contribution limits compared to Traditional/Roth IRAs.
- They are also straightforward to administer, and usually come with a low cost.
Cons:
- Mandatory employer contributions (i.e. if you have any employees, you’ll need to contribute).
- Lower contribution limits compared to Solo 401(k) or SEP plans.
3. Solo 401(k)s
How to Sign Up and Contribute: Solo 401(k)s are specifically designed for self-employed individuals or businesses with no employees (not including spouses). You can open a Solo 401(k) with most brokerage firms. Contribution limits for 2025 are up to $70,000 ($77,500 for those over 50).
Pros:
- The highest contribution limits of all the options on this list, which could facilitate a higher growth rate for your retirement savings.
- Tax-deferred contributions and tax-free growth on Roth Solo 401(k) options.
Cons:
- Considerably more administrative paperwork compared to IRAs.
- Not available if you have other employees (besides your spouse).
4. SEP IRAs
How to Sign Up and Contribute: SEP (Simplified Employee Pension) IRAs are easy to establish through banks or brokerage accounts. As of 2025, you can contribute up to 25% of your net earnings or $70,000 (whichever amount is lower).
Pros:
- Easy setup and minimal administrative work.
- High contribution limits (almost equivalent to Solo 401(k)s, depending on your unique financial situation).
- Flexible contributions year to year based on your earnings.
Cons:
- Contributions must be equal percentages for you and your employees (if applicable).
- No catch-up contributions for older savers (unlike the first three options on this list).
Practical Retirement Planning Tips for Self-Employed Professionals
If you’re willing to keep it simple — choosing the plan that makes the most sense for your unique life circumstances as a self-employed individual — you can start to order your life beyond the plan with the following value-adding tips:
- Consistent Contributions: It could be wise to max out your retirement account contributions every year, or at least to contribute as much as you can, as often as you can (even in a weak business cycle), to make the most of compound interest: the more consistent you are, the quicker your savings could grow.
- Plan for Taxes: It’s good to be aware ahead of time what the the unique tax implications are for your chosen retirement vehicle, including withdrawals during your retirement years, so you can adjust your plan accordingly.
- Diversify Your Investments: The more diversified your retirement portfolio is — across as many investment types as possible — the more you can mitigate the risk associated with any one investment. Diversification is not a guaranteed protection against loss in a declining market, but research has shown it can at least mitigate the impacts of a down year.
- Account for Inflation (with professional assistance): Many retirement plans focus on retirement cash flow (the total amount you plan to have once you retire). Financial advisors can help you work out the impact inflation has on this figure. As Greg often says: “$100,000 in today’s money is not the same as $100,000 thirty years from now.” Advisors like those at Iron Point Financial can help you convert today’s dollars into future dollars by running the numbers, and figuring out how much you need to save today to reach your goal.
- Consolidation: Just because you are currently self-employed, that does not mean you have always been. If you have retirement accounts from a previous job (or jobs), it could be wise to convert them all into a single investment account, rather than to keep multiple accounts going at the same time.
Greg’s words of wisdom on this last point bear repeating, in light of our proposed K.I.S.S. mentality:
“Remember, if you have left a job that had a 401(k) work plan, that doesn’t mean you’ve moved from that original plan. You might have switched jobs three times and have money scattered all over. What we can do is consolidate them so that there’s one contact and one strategy guiding the money, rather than having them all over the place. Consolidation makes things simpler.”
Your Retirement, Your Way: Take Action Today
Retirement looks different for everyone, and that can be especially true for people who have charted their own career paths through self-employment. We are convinced that the key to retirement planning for self-employed professionals is to infuse it with the goals and values that resonate most deeply with you.
If you would like help designing a retirement plan as unique and intentional as the life you have already chosen to lead, simply reach out to Iron Point Financial today to schedule an appointment. Let’s chart a retirement path that matches your vision for the future.
No matter where you’re at, we know how to help. As Greg would say, “We have a streamlined planning process. We’ll get your retirement planning calculations done in an efficient, easy-to-understand manner. Period. And then we’re going to execute on it. Simple.”
And if you enjoyed our take on effective retirement plans for self employed people, and you would like to hear more from us in future, why not sign up for email updates, so you never miss a future post?
Iron Point Financial is here to empower you to secure a brighter tomorrow. We operate physical offices in Grove City, PA and Greenville, PA.
We primarily serve residents of Pennsylvania, Ohio, West Virginia and Florida but we also have security registrations for 22 other states across the continental USA.
