As of 2024, nearly a quarter of full-time U.S. workers and more than half of part-time workers didn't have access to a retirement plan through their job. If you are one of the many people without a workplace 401(k), here are your options to save for retirement on your own.

Understandi🐷ng Retirement Savings Without a 401(k)

A 401(k) is the most popular type of employer-sponsored retirement plan in the United States. In 2025, participants can contribute $23,500 plus an additional catch-up contribution of $7,500 for workers ages 50 and older. Beginning in 2025, catch-up contributions are $11,250 for workers ages 60 to 63. Workers make pre-tax contributions from their paycheck; many employe✅rs w⛦ill also match 401(k) contributions up to a certain percentage.

Without the high contribution limits of a 401(k) and the possibility of an employer match, it can be difficult to save for retirement. Workers without enough savings may have to continue working, depend on family, or live solely on Social Security benefits. Average Social Security benefits were $1,976 per month in January 2025, with many retirees receiving significantly less.

However, with careful planning, you can build retirement savin꧋gs without an employer-sponsored♔ 401(k).

Individual Retirement Accounts (IRAs)

An 澳洲幸运5官方开奖结果体彩网:individꦓual retirement account (IRA) is a tax-adva🧸ntaged investment account that anyone with earned income can open. Most banks and brokerages offer IRAs.

Qualified withdrawals are taken after you reach age 59 ½ and after the IRA has been open for at least five years. If you make early withdrawals, you will have to pay a 10% penalty unless the withdrawal meets certain exceptions. Exceptions include withdrawals to manage:

• Total and permanent disability
• Qualified higher education expenses
• Terminal illness
• Domestic abuse
• Qualified education expenses
• Qualified adoption expenses
• Losses from a federally declared disaster

The drawback to saving with an IRA is the low annual contribution limits. In 2025, you can contribute up to $7,000 across all the IRAs you own, or up to $8,000 if you are age 50 or older.

Traditional IRA

A traditional IRA is funded with pre-tax dollars. Contributions are deducted from your taxable income when you file your yearly tax return. The account grows tax-free, and withdrawals during retirement are taxed as ordinary income.

If you have a traditional IRA, you must start taking distributions no later than April 1 following the year in which you turn 72.

Roth IRA

Contributions made to a Roth IRA are taxed the year that they are earned.

"Work with a professional to determine if a Roth IRA...would be appropriate for you," suggests , CPFA, retirement plan specialist and financial advisor at Everthrive Financial. "Roth savings features paying your taxes in the year𒁃 that you make the contribution, and then the withdrawals of both your contributions and any growth the account experiences a🌺re tax-free."

If you expect to be in a higher tax bracket when you retire, a Roth IRA may be a smart investment strategy. A Roth IRA does not have required minimum distributions if you are the original owner; there are different requirements for an inherited IRA.

Spousal IRA

In general, you must have earned income to contribute to an IRA. However, if you are a non-working spouse, you can still save for retirement with a spousal IRA. If you and your spouse file your tax return jointly, the two of you can contribute an additional $7,000 ($8,000 if you are age 50 or older) to a spousal IRA in your name. This amount remains the same even if your spouse is also contributing the full amount to an IRA for themselves.

Taxable Investment Accounts

If you've maxed out contributions to your retirement accounts for the year, a taxable investment account can provide better returns than a savings account. Use a taxable investment account, such as a brokerage account, to invest in stocks, bonds, mutual funds, and 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs).

Be sure to evaluate your risk tolerance and 澳洲幸运5官方开奖结果体彩网:time horizon while choosing your investments. Earnings from a taxable investment account are subject to 澳洲幸运5官方开奖结果体彩网:capital gains tax; pl✃an for how these tax brackets will impact your income and spending in retirement.

Retirement Options for the Self-Employed

SEP-IRA

A 澳洲幸运5官方开奖ไ结果💮体彩网:simplified employee pension (SEP) IRA is an individual retirement account that an employer can establish for employees or a self-employed person can open for themselves. The employer, which includes a self-employed person, gets a tax deduction for contributions, alonওg with tax credits to offset the cost of starting the account.

SEPs have higher contribution limits than standard IRAs. If you are self-employed, contributions are limited to the lesser of 25% of your profits minus your SEP contributions or $70,000 in 2025 (this is an increase from 2024's $69,000). Once contributions are deposited, they become traditional IRA assets and are subject to the same rules for withdrawals, penalties, and taxes.

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is an individual retirement account designed for a business with 100 or fewer employees, including sole proprietorships. To open a SIMPLE IRA, you must have earned at least $5,000 in any two previous calendar years and expect to earn at least $5,000 in the current year.

There is minimal paperwork required to set up a SIMPLE IRA, which can be opened at most banks. You can get a tax deduction for contributions that you make to your account. However, contribution limits are lower than for other self-employed retirement accounts. In 2025, you can contribute up to $16,500; if you are 50 or older, you can make catch-up contributions of $3,500. Certain SIMPLE plans allow those aged 50 or more to contribute $3,850, and employees aged 60 – 63 are allowed catch-up contributions of $5,250.

Solo 401(k)

If you are self-employed, you can open a 澳洲幸运5官方开奖结果体彩网:solo 401(k). To qualify, you must operate your own business with no employees (other than a spouse) and earn income from that business.

You can contribute as both employer and employee. This means that in 2025, you can contribute up to $70,000, plus $7,500 in catch-up contributions if you are age 50 or older. You can choose a traditional 401(k) or a Roth 401(k), depending on when you want to pay income tax on your contributions. If your plan has $250,000 or more in it at the end of the year, you may be required to file Form 5500-EZ with the IRS.

Additional Savings Strategies

Health Savings Accounts (HSAs)

"It is important to not only consider your current health, but also your family's health to plan for expenses in retirement," says Kertis. "Healthcare can be a significant drain on any fixed-income living situation."

A 澳洲幸运5官方开奖结果体彩网:health savings account (HSA) can help you plan for healthcare in retirement. If you have a high-deductible health plan, you can open an HSA and fund it with pre-tax contributions from your paycheck. In 2025, contribution limits are:

• $4,300 (individual health plan)
• $8,550 (family coverage)

Withdrawals from the account are tax-free if you use them for qualified health care expenses, including vision and dental care. Or, you can spend some and save the rest; anything you don't spend is rolled over to the next year. If you change your health plan or move to a new employer, you can keep your HSA, invest the money in it, and 澳洲幸运5官方开奖结果体彩网:wait until retirement to spend it.

Once you are retired, you can withdraw the money from your HSA without penalty. If you use it for health care expenses, withdrawals continue to be tax-free. If you use it for other expenses, you will pay income tax on the withdrawals.

Tax-Deferred Annuities

澳洲幸运5官方开奖结果体彩网:Annuities are guaranteed-benefit investment plans offered by insurance companies. "For people💖 who are more cautious and want less risk, annuities can offer some peace of mind," says , CFP, CDFA, and president of financial planning firm Pearl Planning.

When you set up your annuity, you choose the interest rate (fixed, variable, or tied to a specific index) and how long it will payꦑ out (a set number of years or indefinitely until you pass away). The money you put into it is t🦩axed when you withdraw it in retirement.

"[Annuities] provide a reliable stream of income, which can be comforting in retirement, but the costs can be steep," explains Joy. She advises looking at the fees and penalties, including ongoing expenses, surrender charges, and any contract riders, before funding an annuity.

The Bottom Line

It's possible to save for retirement even if you don't have an employer-sponsored 401(k). Tools like IRAs and HSAs come with tax advantages to make saving easier. Even on a 澳洲幸运5官方开奖结果体彩网:tight budget, it's still possible to start putting away money for retirement. And the sooneꦬr you open these accou♑nts, the more time they will have to grow.

"Get started now!" recommends Kertis. "Whether you are 21 with your first job or 60 and playing catch-up, there is never a bad time to start saving."