SEP IRAs and Solo 401(k)s: Retirement Plans for Self-Employed Professionals

Not Working for “The Man”? You Still Need a Retirement Plan

Being your own boss is a freedom many chase, but with that freedom comes a question most folks don’t think about until it’s late in the game: “Wait… how am I saving for retirement?” If you’re a freelancer, contractor, or running your own business in Jeffersonville IN, this is the kind of thing that sneaks up on you like taxes or car trouble. Two of the most practical routes for retirement savings? SEP IRAs and Solo 401(k)s. They sound like alphabet soup, but with the right financial advisor in your corner, they’re surprisingly manageable.

Now, here’s the thing, these accounts are built for people just like you. A SEP IRA (Simplified Employee Pension) is basically the chilled-out cousin of the traditional IRA, letting you contribute way more than the usual limit, especially if you’re earning good money and don’t have full-time employees. Meanwhile, a Solo 401(k) is a powerful tool for those flying solo or working with a spouse, offering both employer and employee contributions. That double-dip can be a game changer for those who’ve built a one-person empire here in Jeffersonville Indiana.

SEP IRA vs. Solo 401(k): So What’s the Catch?

Let me explain, these plans aren’t one-size-fits-all. A Solo 401(k) can allow for larger contributions if your income is modest because of the employee portion, but it also comes with a bit more paperwork (think IRS Form 5500 once you hit $250K). A SEP IRA is way more low-maintenance but doesn’t let you stash as much unless your income is high. Choosing the right one depends on your earnings, your growth plans, and frankly, how much admin work you’re willing to deal with.

That’s where a solid conversation with a financial advisor makes all the difference. At Brookstone Financial in Jeffersonville IN, we’ve worked with everyone from Etsy shop owners to independent consultants trying to figure out what fits their life and goals. There’s no shame in not knowing, most people don’t. The trick is starting the conversation early, while you’ve still got time to let compound interest do its thing. Because let’s be honest: no one wants to hit 65 and say, “Well, at least I had freedom.”

Planning Ahead Feels Good, Like Really Good

You know what? Retirement planning doesn’t have to be stressful or feel like a foreign language. With the right setup and a local guide, Brookstone Financial, who actually listens, you can make informed, confident decisions without losing sleep over tax codes or contribution caps.

And here’s something we’ve seen again and again: once self-employed folks set up one of these accounts and see that balance grow, it changes their entire relationship with money. Suddenly, you’re not just hustling for this month’s invoice, you’re building something long-term. And that, in itself, feels like freedom too.