Working for yourself comes with a mix of freedom and responsibility. You set your hours, pick your projects, and chart your own growth. But when it comes to retirement, there’s no employer-sponsored plan quietly stacking up contributions on your behalf. That part is up to you.

The good news is that self-employed professionals have several retirement account options that rival or even surpass what traditional employees get. The challenge is knowing which ones fit your income, tax situation, and long-term goals. Let’s break down six of the best retirement accounts for the self-employed and how each one works.

Best 6 Retirement Accounts for the Self-Employed

Solo 401(k)

A Solo 401(k), sometimes called an individual 401(k), is designed for people who work for themselves and have no employees other than a spouse. It combines the benefits of a standard employer 401(k) with added flexibility.

You wear two hats here—employee and employer. As the employee, you can contribute up to the annual deferral limit set by the IRS. As the employer, you can contribute a percentage of your net earnings from self-employment, up to a combined maximum cap. This dual structure allows high earners to save aggressively. The plan also lets you choose between traditional contributions, which are tax-deductible now, or Roth contributions, which are taxed upfront but grow tax-free.

SEP IRA

The Simplified Employee Pension (SEP IRA) is another popular choice for the self-employed, especially if you don’t want a lot of paperwork. It’s easy to set up through most brokerages and requires minimal ongoing administration.

With a SEP IRA, you contribute a fixed percentage of your net self-employment income each year, up to the annual maximum. Unlike a Solo 401(k), there’s no separate “employee” contribution, just the employer side. That makes it straightforward but less flexible. If you ever hire employees, you’ll need to contribute the same percentage of pay to their accounts as you do to your own, which is an important consideration if you plan to expand.

SIMPLE IRA

The Savings Incentive Match Plan for Employees (SIMPLE IRA) is another retirement account option if you run a small business with up to 100 employees. While its contribution limits aren’t as high as a Solo 401(k) or SEP IRA, it’s relatively easy to administer.

In this plan, employees can make salary deferrals, and employers are required to contribute either a fixed match or a flat percentage of compensation. For the self-employed, it works like a hybrid of personal contributions plus business contributions. It’s best suited for people who want a straightforward plan without complex filing requirements but who may eventually hire staff.

Roth IRA

A Roth IRA isn’t exclusive to the self-employed, but it remains one of the most powerful retirement tools available. Contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free. This makes it especially appealing for younger self-employed workers or anyone expecting to be in a higher tax bracket later in life.

The trade-off is the income limit for eligibility. If your earnings exceed the threshold, your ability to contribute directly is phased out. However, strategies like a “backdoor Roth” exist for those who want access to the benefits but make too much. Even if you’re funding another account like a Solo 401(k), adding a Roth IRA gives you tax diversification.

Traditional IRA

The Traditional IRA is another standard retirement account option. Unlike the Roth, contributions may be tax-deductible in the year you make them, lowering your taxable income. Earnings grow tax-deferred, and you’ll pay ordinary income tax when you withdraw funds in retirement.

For self-employed people with moderate earnings, a Traditional IRA can provide valuable tax relief. The main limitation is its contribution cap, which is lower than that of other accounts like the Solo 401(k) or SEP IRA. Still, it’s a simple way to set aside money for the future, and it pairs well with other plans if you want to layer your savings.

Defined Benefit Plan

For high earners who want to put away large sums and reduce taxable income, a Defined Benefit Plan can be attractive. This type of plan is structured more like a pension. You commit to a set retirement benefit, and your annual contribution is calculated based on actuarial formulas that account for your age, income, and retirement timeline.

The contribution limits are much higher than most other accounts, sometimes reaching six figures annually. That said, these plans are more complex to set up and maintain, often requiring professional administration and higher costs. They work best for self-employed individuals with consistent, high incomes who want to maximize retirement savings while reducing taxable income.

Choosing the Right Retirement Account

Deciding which retirement account is right for you depends on several factors: income level, whether you plan to hire employees, how much administrative work you're willing to take on, and your tax strategy. For someone starting with a modest income, a Roth IRA or a Traditional IRA might be the simplest choice. For higher earners aiming to save aggressively, a Solo 401(k) or Defined Benefit Plan can be more effective.

Many self-employed people actually use a combination of accounts. For example, funding a Solo 401(k) for large contributions while maintaining a Roth IRA for tax-free withdrawals later. Balancing these accounts gives you flexibility as your business and income grow.

Conclusion

Working for yourself doesn’t mean sacrificing retirement security. In fact, self-employed workers often have more ways to save than traditional employees, provided they understand the rules and options. A Solo 401(k) allows big contributions, a SEP IRA offers simplicity, a SIMPLE IRA suits small teams, and Roth or Traditional IRAs provide accessible entry points. For high earners, a Defined Benefit Plan can be a powerful tool. The key is choosing an account that fits your current income and future goals, while leaving room for flexibility as your career evolves. Retirement may feel far away, but building it starts with the decisions you make today.