No 401k? No Problem
You don’t need a 401k to retire well. Whether your job doesn’t offer one or you’re self-employed, you can still build a strong retirement plan. The key is knowing your options and using them the right way.
Let’s break it down.
Open an IRA
Start with the basics. If you earn income, you can open an Individual Retirement Account. This is one of the easiest and most flexible ways to start building retirement savings without an employer plan.
IRAs come in two main types: Traditional and Roth. Each has different tax benefits depending on your income now and what you expect in retirement.
Download your free guide to mastering taxes in retirement today!
Traditional IRA
With a traditional IRA, you contribute money before taxes. That lowers your taxable income for the year, which could reduce what you owe the IRS. Your money grows in the account without being taxed along the way.
When you retire and start withdrawing funds, those withdrawals are taxed as regular income. This setup works well if you expect to be in a lower tax bracket in retirement.
But there are rules. Starting the year you turn 73 (or 75 if you were born in 1960 or after) , you must begin taking required minimum distributions. These are calculated amounts you must withdraw each year, and they’re taxed as income. If you don’t take them, you’ll face a penalty.
Roth IRA
A Roth IRA works differently. You pay taxes on your money before you contribute. The trade-off is that your money grows tax-free, and qualified withdrawals are also tax-free.
You can take out your original contributions at any time. Earnings can be withdrawn tax-free if you are at least 59 and a half years old and have held the account for at least five years.
Roth IRAs do not require minimum distributions for the original account holder. That makes them a smart option if you want to keep your money invested for longer or leave it to heirs.
If you think your tax rate will be higher in retirement than it is now, a Roth IRA can be the better choice.
How Much Can You Contribute
In 2025, you can contribute up to 7,000 dollars to all your IRAs combined. If you are 50 or older, you can contribute up to 8,000 dollars. This includes both traditional and Roth accounts. You can split contributions between the two, but the total must stay within the limit.
Spousal IRA Option
You must have earned income to contribute to an IRA. But if you don’t work and your spouse does, you can still open an IRA under your name. This is called a spousal IRA.
You and your spouse must file a joint tax return. Each of you can contribute up to 7,000 dollars for 2025. If either of you is 50 or older, that person can contribute up to 8,000 dollars.
Even if your spouse maxes out their own IRA, you can still contribute the full amount to yours. This helps couples build more retirement savings as a team.
Where to Open One
Most banks, brokerages, and robo-advisors offer IRAs. You can choose to manage the account yourself or let the provider guide your investment choices based on your goals, timeline, and comfort with risk.
You don’t need thousands to start. Many providers let you open an IRA with as little as 100 dollars and set up automatic monthly contributions from your checking account.
Use an HSA
If you have a high deductible health plan, a Health Savings Account gives you triple tax benefits:
Pre-tax contributions lower your income
Investments grow tax-free
Withdrawals for qualified medical expenses are tax-free
In 2025, you can contribute up to 4,300 dollars for individual coverage or 8,550 dollars for family coverage. If you are age 55 or older, you can contribute an additional 1,000 dollars to your HSA. After age 65, you can use the money for anything. If it’s not for healthcare, you’ll just pay income tax—no penalty.
This is one of the most underused retirement tools.
Self-employed? Go bigger
If you’re a freelancer, consultant, or business owner, you’ve got powerful options with higher contribution limits.
Download your free guide to mastering taxes in retirement today!
SEP IRA
A Simplified Employee Pension plan lets you contribute up to 25 percent of your income or 70,000 dollars in 2025. You get a tax deduction. Your money grows tax-deferred.
Simple to set up. No annual filing requirements.
SIMPLE IRA
Designed for small businesses with 100 or fewer employees. You can contribute up to 16,500 dollars in 2025. If you're 50 or older, you can add 3,500 dollars more. Contribution limits may also increase further based upon the size of the employer and “super catch-up” for employees ages 60 to 63.
Employers must contribute either:
A 3 percent match, or
A 2 percent non-elective contribution for all employees
Easy to open and manage, and available at most banks.
Solo 401k
Perfect for solo business owners with no employees except a spouse. You contribute as both employer and employee.
In 2025, you can contribute up to 70,000 dollars. If you're 50 or older, you can add 7,500 dollars in catch-up contributions.
You can choose a traditional or Roth version. Once the plan balance hits 250,000 dollars, you must file Form 5500 with the IRS.
Try a Taxable Investment Account
If you’ve maxed out your retirement accounts, invest through a regular brokerage account. No tax advantages, but no limits either.
Use it for:
Stocks
Bonds
ETFs
Mutual funds
You’ll pay capital gains taxes when you sell, but you get full control over your money. Just make sure you have a cash buffer in a savings account for emergencies.
What if You’re Just Starting?
Start small. You don’t need a big salary to save. You need consistency.
Here’s an example:
Put 150 dollars a month into a Roth IRA
Save 100 dollars a month in an HSA
Add 50 dollars to a savings account for emergencies
If you freelance, save 10 to 15 percent of that income into a SEP IRA
Over time, that adds up. The earlier you start, the more you gain from compound growth.
Prioritize Like This
Start with HSA
If you have a high deductible health plan, HSAs offer triple tax advantages.Next, open an IRA
Roth IRAs are best if your tax rate is low. Traditional IRAs work if you need a deduction now.Then, consider SEP or Solo 401k
If you’re self-employed, these plans let you save more with higher limits.Use taxable investments last
They offer growth but no tax advantages. Save here after maxing out other options.
Key Takeaways
You don’t need a 401k to retire comfortably
IRAs and HSAs offer tax savings and flexibility
Self-employed retirement plans let you save more
Taxable accounts give you investing freedom
Start now. Even small amounts grow with time
Download your free guide to mastering taxes in retirement today!
Bottom Line
No 401k? You’re not stuck. With the right mix of IRAs, HSAs, self-employed plans, and smart investing, you can still build the retirement you want.
Reference
Investopedia. (2025, April 17). How to Retire a Millionaire Without a 401(k). Retrieved from https://www.investopedia.com/articles/retirement/111516/how-retire-millionaire-without-401k.asp
Investopedia. (2024, October 5). IRA Contribution Limits for 2024 and 2025. Retrieved from https://www.investopedia.com/retirement/ira-contribution-limits/#:~:text=Key%20Takeaways,earned%20income%20to%20an%20IRA
Transamerica Institute. (2024). A Multigenerational Workforce: Life, Work, and Retirement Survey Report 2024. Retrieved from https://www.transamericainstitute.org/docs/research/generations-age/multigenerational-workforce-life-work-retirement-survey-report-2024.pdf?sfvrsn=ef00c973_9
Internal Revenue Service. (2023, November 1). 401(k) Limit Increases to $23,500 for 2025, IRA Limit Remains $7,000. Retrieved from https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
Internal Revenue Service. (n.d.). SIMPLE IRA Plan. Retrieved from https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan
Internal Revenue Service. (n.d.). One-Participant 401(k) Plans. Retrieved from https://www.irs.gov/retirement-plans/one-participant-401k-plans
NewsNation. (2025, May 26). Retirement Savings: How Can You Save Without a 401(k)? Retrieved from https://www.newsnationnow.com/business/your-money/retirement-savings-no-401k/
