Are you among the millions of Americans without access to a workplace 401(k)? Whether you’re self-employed, working for a small business that doesn’t offer retirement benefits, or picking up gig work, you’re not alone.
Nearly a quarter of full-time U.S. workers and more than half of part-time workers don’t have access to employer-sponsored retirement plans. But that doesn’t mean you can’t take advantage of other retirement options. In fact, there are plenty of great alternatives you can choose from to help you build up your retirement savings.
Individual Retirement Accounts (IRAs)
IRAs are accessible to almost anyone with earned income (or even those with a working spouse). They come in two primary flavors and offers tax benefits:
Traditional IRA: Contributions may be tax-deductible now, but you’ll pay taxes when you withdraw in retirement1. This can be particularly beneficial if you expect to be in a lower tax bracket during retirement.
Roth IRA: You contribute after-tax dollars today, but your withdrawals in retirement—including all earnings—are completely tax-free. This can be an excellent choice if you anticipate being in a higher tax bracket later. You can learn more about Roth IRAs here.
For 2025, you can contribute up to $7,000 to an IRA ($8,000 if you’re 50 or older). While this limit is lower than a 401(k)’s, IRAs offer more investment flexibility and control over your fees.
Self-Employment Retirement Options
If you’re self-employed or run a small business, you have access to some powerful retirement savings vehicles:
SEP IRA (Simplified Employee Pension plan): This option allows you to contribute up to 25% of your net earnings from self-employment, with a maximum of $70,000 in 2025. It’s particularly attractive for high-earning freelancers or small business owners who want simplicity.
Solo 401(k): Also known as a self-employed 401(k), this plan lets you contribute both as an employee and an employer. For 2025, you can contribute up to $23,500 as an employee, plus an additional employer contribution of up to 25% of compensation, with a combined maximum of $70,000.
If you’re age 50 to 59 or older than 64, you can add a catch-up contribution of $7,500, for a total employee contribution of $31,000. And if you’re age 60 to 63, you can add a catch-up contribution of $11,250, for a total employee contribution of $34,750.
SIMPLE IRA: This plan is designed for small businesses with 100 or fewer employees. In 2025, employees can contribute up to $16,500, plus an additional contribution amount if you’re 50 or older. As the employer, you must make either matching or nonelective contributions.
Health Savings Accounts
If you have a high-deductible health plan, don’t overlook the HSA. These accounts offer a remarkable triple tax advantage:
- Tax-deductible contributions
- Tax-free growth
- Tax-free withdrawals for qualified medical expenses
After age 65, you can withdraw HSA funds for any purpose without penalty (though non-medical withdrawals will be taxed like a traditional IRA). This flexibility makes HSAs a uniquely powerful retirement planning tool, especially considering healthcare is typically one of the largest expenses in retirement.
Taxable Investment Accounts
While taxable brokerage accounts don’t offer the same tax advantages as retirement accounts, they give you complete flexibility with no contribution limits or withdrawal restrictions. When you use smart tax strategies, these accounts can be used tax efficiently by:
- Holding tax-efficient investments like index funds and ETFs
- Using tax-loss harvesting to offset gains
- Holding municipal bonds for tax-exempt income
The flexibility to access your money anytime without penalties can make taxable accounts a great complement to your tax-advantaged retirement savings.
Creating Your Retirement Savings Strategy
Without a 401(k), you’ll need to be more proactive about saving and planning for your retirement. Here’s a way to consider approaching it:
- Start with an IRA: Open either a traditional or Roth IRA based on your tax situation.
- Consider an HSA: If eligible, maximize contributions to take advantage of the triple tax benefit.
- Self-employed options: If you’re self-employed, explore SEP IRAs or Solo 401(k)s or SIMPLE IRAs to maximize your tax-advantaged savings.
- Supplement with taxable accounts: Once you’ve maxed out tax-advantaged options, continue saving in taxable investment accounts.
- Automate your savings: Set up automatic transfers so you’re making consistent contributions.
Keep in mind that the most important factor in building retirement wealth is time. The sooner you start saving—even small amounts—the better the odds your money has to grow through compound interest.
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