Solo 401(k) vs SEP IRA: Which Retirement Account Is Best for Gig Workers?

If you're self-employed or earn 1099 income from gig work, you have two powerful retirement account options: the Solo 401(k) and the SEP IRA. Both let you save far more than a traditional IRA ($7,500 limit). But for most gig workers, one is clearly better.

When we designed PRActicle™, we chose a portable Roth IRA as the foundation because it fits gig workers better than any employer-tied plan:

• Roth contributions = tax-free growth and tax-free retirement income
• Contributions (not earnings) can be withdrawn anytime, tax- and penalty-free — a built-in safety net
• No employer required — reserve it free, with account opening rolling out, and it's designed to follow you across every platform
• Saver's Match eligible (2027+)

You contribute post-tax dollars (up to $7,500/year, or $8,600 if you're 50+), and because most gig workers are in a lower tax bracket today than they expect to be later, paying the tax now and never again is a powerful long-term win. Custody and brokerage services are provided by a FINRA/SIPC-member broker-dealer. If you have a high-income year and want larger contribution room, a SEP IRA or Solo 401(k) — opened at a separate brokerage — is worth comparing with our calculators.