Building a business, consulting on your own terms, and driving growth. The shape of modern work has evolved, and with it, so has the definition of a career. Increasingly, Americans are investing in themselves — launching companies, working as independent contractors, or combining multiple income streams as part of the growing freelance, self-employment, and gig economy.

But while this shift brings freedom, it also brings complexity, especially when it comes to retirement planning. Without an employer-sponsored 401(k) or benefits package, how do you prepare for the long term?

Retirement isn’t just for employees. It’s for builders, creators, risk-takers, and anyone investing in themselves today with the goal of independence tomorrow.

At Grey Ledge Advisors, we partner with entrepreneurs, small business owners, freelancers, and gig workers to create sustainable, tax-efficient retirement strategies. No matter how nontraditional your work path may be, your future still deserves structure.

The Changing Face of Work

Self-employment isn’t a niche. It’s the fastest-growing segment of the American workforce. From app-based workers (Uber, DoorDash, Instacart) to freelance creatives, contractors, and solo professionals, many are building careers outside the W-2 world. And at the same time, entrepreneurs and small business owners are pushing their ventures forward, often wearing multiple hats and prioritizing reinvestment over long-term savings.

But here’s the truth: the earlier you incorporate retirement planning into your business or freelance income strategy, the more flexibility — and financial security — you’ll gain later.

Start with the Basics: IRAs

Whether you earn $5,000 from side gigs or $500,000 from your own business, IRAs remain one of the most accessible retirement vehicles available.

Traditional IRA

• Tax Treatment: Potentially tax-deductible contributions; growth is tax-deferred.
• 2025 Contribution Limit: $7,000 (plus $1,000 catch-up if age 50+).
• Best For: Individuals looking to reduce current taxable income and defer taxes until retirement.

Roth IRA

• Tax Treatment: After-tax contributions; qualified withdrawals are tax-free.
• Same contribution limits, but subject to income eligibility:
  • MAGI Phase-out Ranges:
    $150,000 – $165,000 (single  or married filing separately)
    $236,000 – $246,000 (married filing jointly or qualifying widow)
• Best For: Younger or growth-minded savers expecting higher income or tax rates in the future.

Both Traditional and Roth IRAs are foundational tools. Still, they may not provide enough contribution capacity for high earners or business owners looking to make larger investments in retirement.

The SEP IRA: Built for the Self-Employed

The SEP IRA (Simplified Employee Pension) is a flexible, tax-advantaged solution specifically designed for self-employment — sole proprietors, freelancers, and small business owners.

• 2025 Contribution Limit: Up to 25% of net self-employment earnings or $70,000 (whichever is less).
• Tax Advantages: Contributions are deductible and grow tax-deferred.
• No annual funding requirement—ideal for variable income years.
• Easy Setup: No annual IRS filings or plan administration required.

Small Business Consideration: If you have employees, an SEP IRA requires proportional contributions for eligible workers, making it ideal for solo owners or those without full-time staff.

Solo 401(k): High Capacity with Added Flexibility

For self-employed individuals with no employees (aside from a spouse), the Solo 401(k)—also known as an Individual 401(k) — offers robust contribution limits and flexibility.

• 2025 Contribution Potential:
  • Employee deferral: $23,500 (plus $7,500 catch-up if age 50+).
  • Employer contribution (as your business): Up to 25% of compensation.
  • Combined limit: Up to $70,000 (plus $7,500 catch-up if age 50+).
• Additional Perks: Option to include a Roth component or loan provisions.
• Administrative Note: Annual filing required once assets exceed $250,000.

Best For: High-earning solopreneurs who want to maximize contributions and may want Roth flexibility.

For Entrepreneurs and Small Business Owners

Entrepreneurs often pour time and capital into building their businesses, but personal retirement planning can fall by the wayside. That’s a missed opportunity. Business owners have unique options to integrate retirement savings into their broader financial strategy.

In addition to SEP IRAs and Solo 401(k)s, business owners may consider:

• Defined Benefit Plans: Ideal for high-income owners seeking to make large tax-deferred contributions—potentially over $100,000 per year, depending on age and income.
• Safe Harbor 401(k) or SIMPLE IRA: Suitable for businesses with employees, offering less administrative burden while encouraging employee participation and allowing employer contributions to remain deductible.

The structure you choose can also support business continuity planning, succession goals, and tax efficiency, especially as your company grows or prepares for transition.

Gig Workers: Saving Despite Inconsistent Income

For app-based workers and freelancers with fluctuating earnings, the challenge isn’t a lack of options — it’s consistency. But even modest contributions, made regularly, can grow substantially with time and discipline.

• Automate contributions: Treat savings like a business expense.
• Use high-earning months: Allocate a percentage toward your IRA or SEP.
• Make deadline contributions: SEP IRAs can be funded up to the tax-filing deadline, often allowing retroactive savings and tax deduction opportunities.

Every dollar saved—especially in tax-advantaged accounts—is doing more than you might think. Compound growth and tax efficiency are powerful partners.

Why Work With a Financial Advisor?

Working for yourself often means juggling everything: income, expenses, taxes, marketing, and growth. Retirement planning shouldn’t be another burden — it should be a strategic advantage.

At Grey Ledge Advisors, we bring clarity to complex financial lives. We help self-employed professionals — from gig workers to growth-stage entrepreneurs — create retirement plans that are aligned, scalable, and designed to evolve. Whether you need to lower taxable income, invest surplus cash, or develop a long-term exit plan from your business, we serve as your partner and advocate.