IRAs, Solo 401(k)s, and SEP Plans: Retirement Options for Freelancers and Performers
Earlier this month, we discussed retiring as a performing artist. When you're self-employed, retirement planning can feel like a DIY project with no instructions. But the good news is: you have powerful options - some even more flexible and generous than traditional 401(k)s.
Whether you're a gigging musician, choreographer, freelance designer, or teaching artist, here's your quick-start guide to the most effective retirement plans for freelancers and performers.
Traditional IRA
Best for: Artists who are starting out or in lower income years
2025 Contribution Limit: $7,000 (or $8,000 if you're 50 or older)
Tax Benefit: Contributions may be tax-deductible, and investment growth is tax-deferred
Traditional IRAs are simple to open and give you a break on taxes today. They're a great way to begin building retirement savings while your income is still developing.
Roth IRA
Best for: Those currently in a lower tax bracket who expect to pay more in taxes later in life
2025 Contribution Limit: Same as Traditional IRA
Tax Benefit: No deduction now, but qualified withdrawals in retirement are completely tax free
Roth IRAs are especially valuable to performers and freelancers early in their careers. You won't get a tax break today, but you'll enjoy tax-free income in retirement - an incredible benefit if your earnings grow over time.
SEP IRA
Best for: Freelancers and contractors with variable or high income
2025 Contribution Limit: Up to 25% of your net earnings, maxing out at $70,000
Pros: High contribution limits and to set up
A SEP IRA allows for larger contributions in good years and nothing in leaner years. That flexibility makes it ideal for self-employed creatives whose income fluctuates.
Solo 401(k)
Best for: Self-employed artists or small business owners with no employees
2025 Contribution Limit: Up to $70,000, including both employee and employer portions
Pros: Even higher savings potential; Roth option available
The Solo 401(k) is a powerhouse for those who want to supercharge their savings. If your earnings are strong and steady, this plan lets you tuck away a substational portion of income - especially valuable if you're playing retirement catch-up.
Which Plan Should You Chose?
It depends on your stage of life, income level, and tax strategy:
- Just getting started? A Roth IRA is simple and powerful
- Earning more and want big deductions? Consider a SEP IRA or Solo 401(k)
- Looking for maximum flexibility and tax planning? Solo 401(k) offers the most options - especially if you want Roth savings and high contribution limits.
Need Help Choosing?
You don't have to navigate this alone. At Fleur-de-lis Financial, we help freelanceers and performing artists evaluate their retirement ootions, manage contributions, and build plans that reflect the ups and downs of creative income.
Planning for retirement doesn't mean giving up the freedom of your lifestyle - it means protecting it for the long term.
Book a no-pressure consultation, and let's map out a plan for your retirement.