No 401(k)? No Problem

Jun 22, 2022 Retirement

Saving for retirement without a 401(k) can be challenging, but it’s not impossible. Explore different ways to reach your retirement goals.

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If you’re self-employed or don’t have access to an employer-sponsored plan, there are still plenty of ways to begin contributing to your retirement savings. Here are a few different account options that can help maximize your contributions.

Options To Consider


Individual Retirement Accounts, or IRAs, are tax-advantaged investment accounts used to save for retirement. These accounts are great alternatives to a 401(k) and can be opened by anyone with earned income. There are two main types of IRAs to choose from – Traditional or Roth – with the biggest difference being the timing of the tax advantages.

Contributions made to Traditional IRAs are typically tax deductible, providing an upfront tax break. In turn, you’ll need to pay taxes on both contributions and earnings upon making a withdrawal. Contributions to a Roth IRA, on the other hand, are after tax. The benefit is that withdrawals, including earnings, for qualified distributions are generally tax-free.

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Life Guidance for:

Saving For Retirement

Saving for retirement can be daunting, especially early on. Dive into our resources to better understand your options and take full advantage of your best retirement saving asset – time.

Self-Employed Retirement Accounts

If you’re self-employed, there are two retirement accounts you may be eligible for – a Self-Employed 401(k) or SEP IRA. Self-Employed 401(k)s, also known as Solo 401(k)s, are a great way to maximize your retirement savings if your business doesn’t employ anyone who isn’t a spouse. These accounts allow the opportunity to contribute twice, as the employee and employer. Business owners can contribute up to 25% of net self-employment income as an employer and can contribute up to the IRS limit as an employee. Traditional and Roth options are also available.

Another great option are Simplified Employee Pension Individual Retirement Accounts, or SEP IRAs. Self-employed individuals or small business owners can contribute up to 25% of an employee’s total compensation to a Traditional IRA. This means self-employed persons can contribute up to 25% of net income, up to the annual IRS limit.

Brokerage Accounts

Another option to consider are taxable investments, such as a brokerage account. While these accounts don’t offer as many tax advantages as IRAs, they can typically generate returns that a savings account can’t offer. The general rule to investments is the higher the risk, the higher the potential returns, so be sure to consider your risk tolerance and time horizon.


While the absence of a workplace 401(k) or retirement plan can make saving more difficult, the most important thing to remember is that you have options. It’s all about finding a plan that works with your goals and investing as soon as you can. The more time your money has to grow, the better. A+FCU members can explore options today by taking advantage of a free consultation with one of our A+ Wealth Management financial advisors.


This is not meant to be tax or investment advice. We recommend talking with a tax or investment advisor for more specific information and recommendations.

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