Do independent contractors need a 401(k)?

The mainstay of retirement saving for an independent contractor should be an individual 401 (k), sometimes called a solo 401 (k). These plans allow you to make an $18,500 “employee” contribution ($24,500 if older than age 50) and then make “employer” contributions of 20 percent of your net income up to the plan contribution limit of $55,000.

Do independent contractors get 401(k) matches?

While you will no longer get a 401 (k) match from the employer, you are also no longer limited by the employer’s contribution limits, plan fees, or often poor investment options. The mainstay of retirement saving for an independent contractor should be an individual 401 (k), sometimes called a solo 401 (k).

Do freelancers and independent contractors have a 401(k)?

Freelancers and independent contractors have some of the same retirement plan options as small-business owners, including the IRA, SEP IRA, SIMPLE IRA, self-employed 401 (k), Fidelity Advantage 401 (k) SM, and HSAs. The pandemic forced many people to take on side jobs to fill in the income gap left by furloughs and unemployment caused by COVID-19.