Freelance Retirement Calculator
Compare SEP IRA, Solo 401(k), Roth IRA, and HSA options. See your maximum contribution limits, tax savings, and path to financial independence.
1Income & Business
Used to calculate your Financial Independence number
2Retirement Goals
Historical S&P 500 average: ~10% (7-8% inflation-adjusted)
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Retirement Planning for Freelancers
The Freelancer Advantage
Freelancers actually have a significant retirement savings advantage over W2 employees. While employees are limited to $23,500 in 401(k) deferrals, freelancers with a Solo 401(k) can contribute up to $69,000 annually — nearly 3x more in tax-advantaged savings.
Account Types Explained
- Solo 401(k): Highest limits. Both employee ($23,500) and employer (25% of earnings) contributions. Roth option available.
- SEP IRA: Simplest setup. Contribute up to 25% of net SE earnings (max $69,000). Can open and fund by tax deadline.
- Roth IRA: Tax-free growth and withdrawals. $7,000 limit ($8,000 if 50+). Income phase-outs apply.
- HSA: Triple tax advantage if you have a high-deductible health plan. $4,300 individual limit.
Financial Independence for Freelancers
The 4% rule suggests you need 25 times your annual expenses to achieve financial independence. If you spend $60,000/year, your target is $1.5 million. With consistent investing and compound growth, many freelancers can reach this goal in 15-20 years.
Disclaimer: This calculator provides estimates based on 2026 contribution limits. Retirement planning involves many variables. Consult with a financial advisor for personalized guidance.