Planning for retirement when your job doesn't offer you a plan, according to financial planners (2024)

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

• Roth and traditional IRAs are options for anyone who doesn't have access to a 401(k).
• For self-employed people, a solo 401(k) or SEP IRA could be the right move.
• Anyone can use a health savings account to invest more for retirement.

Not everyone has access to a 401(k) at work. Whether you're self-employed or your employer doesn't offer one, 401(k) plans simply aren't available to everyone.

That doesn't mean that you can't still save for retirement — you can, and should. According to financial planners, there are several ways you can keep saving or start saving, even without a 401(k) plan.

1. Open a Roth or traditional IRA

If you earn an income, an IRA may be an option for you.

There are two types: Roth and traditional IRAs. Money that goes into a Roth IRA is taxed now, and comes out tax-free in retirement, increasing the amount you'll have available later on. A traditional IRA focuses the tax savings now, with taxes paid when cash is withdrawn.

Financial planner Kenneth Chavis IV ofLourd Murray recommends a Roth IRA for many people who are just starting to save. "If you're earlier in your career, or you've changed careers and your income's a little lower, a Roth IRA makes a ton of sense," he said.

In 2021, you can contribute up to $6,000 to either type of IRA, and the limit increases to $7,000 for those age 50 or older.

To qualify for a Roth IRA, your modified adjusted gross income (MAGI) as a single person must be between $125,000 and $140,000 in 2021. Married couples filing jointly must have a MAGI of between $198,000 and $208,000 in 2021. There are no income limits to qualify for a traditional IRA.

2. If you're self-employed, consider a solo 401(k)

When you're self-employed, a solo 401(k) should be the first place to go, financial planners say.

"These are really the most powerful savings vehicles for people that are self-employed, gig economy workers, or contractors, and it works very similarly to an employer-sponsored plan," Chavis said.

These plans allow you to contribute much more than the typical IRA — the limit is $19,500 per year in 2021, along with up to 25% of your profits, totaling up to to $58,000 this year.

In addition, these contributions are tax-deductible, which Chavis says can help lower your tax bill. However, solo 401(k) plans can be a bit harder to open than other types of retirement accounts — you'll need to have an employer identification number from the IRS in order to open one.

3. SEP IRAs are another useful tool for self-employed people

Solo 401(k) plans might be financial planners' top picks, but they can be a bit more complicated to open. For anyone looking for a fast and easy way to save, a simplified employee pension (or SEP) IRA might be the right move.

"In instances where either we can't do the solo 401(k) due to timing and deadlines, or just due to the complexity, I would recommend the SEP IRA," Chavis said.

You can contribute up to 25% of your income, or up to $58,000 per year if your income is high enough. However, a SEP IRA only allows contributions based as a percentage of income, so for those not earning much, a solo 401(k) could allow more contributions.

4. Anyone can use a health savings account to save for retirement

If you haven't considered using a health savings account for retirement, you probably should.

"That's actually one of the best retirement savings vehicles there is if you know how to use it," said financial planner Brian Bruggeman of Baker Boyer Bank.

Funds don't expire, and can be investedto grow, and withdrawn tax-free later in life or for qualified expenses. These can only be accessed through a high-deductible healthcare plan, but if you have one, an HSA can be a valuable way to save more for retirement.