Retirement guide · Updated November 2026
Can 1099 workers have a 401(k)?
Not through a client's plan. A company's 401(k) is for its employees, and independent contractors aren't employees. But 1099 workers can open their own retirement account, and some of those options let them save more than a typical employee 401(k).
Retirement plan options for independent contractors
Solo 401(k)
Who: Self-employed with no employees other than a spouse
Highest limits: you contribute as both employee and employer. Needs a provider and, above $250,000 in assets, an annual Form 5500-EZ.
SEP IRA
Who: Self-employed, with or without employees
Simple to open. Employer-only contributions of up to 20% of net self-employment earnings, subject to the annual dollar cap.
Traditional or Roth IRA
Who: Anyone with earned income
Lower limit than a SEP or Solo 401(k), but anyone with 1099 income can open one. Roth eligibility phases out at higher incomes.
State auto-IRA (self-enroll)
Who: Residents of some states
Some state programs let self-employed people sign up on their own, even though the employer mandate never covers contractors.
Drivers and gig workers
Rideshare, taxi and delivery drivers who work as independent contractors aren't eligible for the app company's employee plan. The same options above apply. Because gig income is uneven, many drivers start with an IRA and move to a Solo 401(k) or SEP IRA as income grows. See the driver guide and the gig worker retirement calculator.
Run a business that relies on 1099 contractors?
You can't put contractors in your employee 401(k), and state mandates don't cover them either. Gigaverse helps businesses give contractors and hourly staff tax tools and financial education today, with a portable IRA coming, at low or no cost.
Frequently asked questions
Can a 1099 contractor participate in a company's 401(k)?
Generally no. A company's 401(k) covers its employees. Independent contractors are not employees of the client, so they are not eligible for the client's plan. They can open their own Solo 401(k), SEP IRA or IRA instead.
Do Uber, Lyft or DoorDash offer a 401(k) to drivers?
Rideshare and delivery apps generally treat drivers as independent contractors, and contractors are not eligible for a company's employee 401(k). Drivers can open a Solo 401(k), SEP IRA or IRA on their own.
What is the best retirement plan for an independent contractor?
It depends on income and whether you have employees. A Solo 401(k) usually allows the most savings for a one-person business; a SEP IRA is simpler; an IRA works for anyone with earned income. Compare them with our free calculators.
Can a 1099 worker have both a Solo 401(k) and an IRA?
Yes, generally. IRA contributions are separate from Solo 401(k) limits, though deductibility of a traditional IRA and Roth eligibility depend on income.
How can a business help its 1099 contractors save for retirement?
It cannot enroll them in its employee 401(k), but it can offer tools and education that help contractors open and fund their own accounts. Gigaverse helps businesses do that at low or no cost.
Does Gigaverse offer a 401(k)?
No. Gigaverse does not offer a 401(k) or SEP IRA plan today, and its portable Roth IRA is not yet open. Gigaverse offers free calculators, tax tools and financial education now.
General information about IRS rules, not tax or investment advice. Limits change each year; check IRS.gov or a tax professional before contributing.
Gigaverse Ai, Inc. is a software company. It is not a bank, broker-dealer or registered investment adviser and does not provide tax, legal or investment advice. Gigaverse does not offer a 401(k) or SEP IRA plan today, and the portable Roth IRA is not yet open; when it opens, custody will be at a FINRA/SIPC-member broker-dealer. See disclosures.