Two Retirement Accounts Worth Knowing About If You're Self-Employed

SEP IRA's & Solo 401(k)'s let's talk about them..

Many wellness entrepreneurs are familiar with traditional and Roth IRAs. Fewer know about two retirement account types specifically designed for people with self-employment income — the SEP-IRA and the Solo 401(k).

I believe these are among the more underutilized tools available to wellness practitioners. Here's a brief overview of each:

A SEP-IRA (Simplified Employee Pension) may allow eligible individuals to contribute up to 25% of net self-employment income, with a 2026 maximum of $72,000. Contributions are generally tax-deductible and can be made up until your tax filing deadline, including extensions.

A Solo 401(k) is designed for business owners with no employees other than themselves. It has two contribution components — an employee portion (up to $24,500 for 2026, or more with catch-up contributions if you're 50+) and an employer portion — with a combined 2026 limit of $72,000. Some plans also offer a Roth contribution option.

Both account types can potentially reduce your taxable income while building retirement savings — two goals that work well together for self-employed practitioners who often feel behind on retirement planning.

Which option may make sense for your situation depends on your income, business structure, and broader tax picture. This is worth a conversation with both your financial professional and your CPA.

It's worth noting that these aren't your only options. There may be additional retirement account structures worth exploring that could work well for your practice and personal situation, especially if you have employees.



Have questions? Feel free to reach out at erica.rice@whole-wealth.com or call 913.513.0180 — I'm happy to talk through what may make sense for your specific situation.