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Retirement options for gig workers in Pennsylvania (no state plan)
Your W-2 plan covers your paycheck. Gigaverse covers your hustle.
Status as of Oct 28, 2026.
No state-run auto-IRA
Pennsylvania does not operate a state auto-IRA. Nothing in state law withholds retirement savings from a 1099 payment. A W-2 employer plan, or a city payroll program where one exists, covers that job's wages. Gigaverse is the layer for the 1099 income beside it, not a replacement for the plan the paycheck already has.
The 50-state status table is the state auto-IRA hub and the mandate tracker.
What the IRS counted in Pennsylvania, tax year 2023
IRS Statistics of Income Historic Table 2 counts returns, not people. In tax year 2023, Pennsylvania had 927,580 returns with Schedule C income, 14.7% of 6,301,140 returns in the state. 699,820 returns paid self-employment tax. 37,150 of those claimed the self-employed retirement-plan deduction, a rate of 5.3%. That deduction is the SEP, SIMPLE, or qualified-plan line. It does not measure Roth IRA contributions.
Pennsylvania self-employment tax
Federal self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security, up to the $184,500 wage base in 2026, and 2.9% Medicare with no cap. Half of that tax is deductible. Pennsylvania income tax is separate and is in the next section. A state auto-IRA, where one exists, does not replace this federal tax.
Self-employment tax calculator · 1099 estimated tax calculator
Pennsylvania income tax on 1099 profit
Pennsylvania's personal income tax is a flat 3.07% on eight classes of income, including net profits from a business. A loss in one class cannot offset income in another. Many municipalities and school districts also tax earned income under Act 32.
Pennsylvania Department of Revenue, personal income tax
Federal quarterly estimates are separate from the state. The 1099 quarterly tax calculator uses the federal dates and self-employment tax. State tax guides for Pennsylvania cities are linked below and from Pennsylvania local taxes.
Keystone Saves is pending. Philadelphia's plan is for employees.
Pennsylvania has no operating state auto-IRA. House Bill 1263 would establish the Keystone Saves Program. The General Assembly record shows the House passed it 102-101 on May 13, 2025. The Senate referred it to the Finance Committee on May 22, 2025. That referral is the last action on the official bill page. The bill is not law, so no employer is registering for it and no gig worker is being enrolled by the state.
Philadelphia is different, and it still does not cover 1099 work. The Philadelphia Code, section 19-4710, tells the Retirement Savings Board to set up the program so people may begin contributions no later than July 1, 2027. Covered employers facilitate payroll deductions for covered employees unless the employer already offers a qualified plan. The default account in section 19-4704 is a Roth IRA. Section 19-4703 tells the board to advise City Council on a possible expansion to self-employed independent contractors. That expansion is not the current rule. A dasher or rideshare driver paid on a 1099 is not in the payroll group the ordinance describes.
On top of the 3.07% state tax, Act 32 lets municipalities and school districts tax net profits. Pittsburgh and Philadelphia local guides cover the city layer. The state bill and the city ordinance do not replace a Solo 401(k), a SEP, or an IRA for pure 1099 income.
What a 1099 worker can use in 2026
These limits are federal. They do not change because Pennsylvania has no state plan. Catch-up contributions are not part of the $72,000 annual-additions cap.
| Account | 2026 limit | Who it fits |
|---|---|---|
| IRA (Roth or traditional) | $7,500, or $8,600 at age 50 or older. The limit is shared across every IRA. | Earned income, including 1099 profit, within the Roth income limits if the account is a Roth. |
| SEP IRA | Generally up to 25% of compensation, and not more than $72,000 of annual additions. | Employer contribution from the business. A sole proprietor's percentage is computed after self-employment tax adjustments. |
| Solo 401(k) | Elective deferral $24,500. Catch-up $8,000 at 50 or older, or $11,250 at ages 60 through 63. Employer contributions share the $72,000 cap with deferrals, before catch-up. | A self-employed worker with no full-time W-2 employees in the plan, who wants both a deferral and an employer contribution. |
Sources: IRS IR-2025-111, Notice 2025-67, IRS 401(k) contribution limits.
Read the Solo 401(k) for self-employed workers page, then run a number in the SEP-IRA contribution calculator. Gigaverse account opening for the Solo 401(k), the SEP and the PRActicle Roth IRA is waitlist only.
Where Gigaverse fits
Gigaverse is not a state program and is not a registered investment adviser. It sits next to a W-2 plan or a state program when one exists. Plans are Free, Pro ($4.99/mo) and Wealth Builder ($9.99/mo). The Solo 401(k), SEP and PRActicle Roth IRA are waitlist only. Gigaverse's published figure is "$5K+" labeled "Avg. tax savings per year, per worker."
City guides and job guides
These are existing local tax pages, not copies of this retirement guide.
Uber drivers · Lyft drivers · DoorDash drivers · Instacart shoppers · Amazon Flex drivers
Questions
Does Pennsylvania run an auto-IRA for gig workers?
No. Pennsylvania has no state-run auto-IRA in operation. A W-2 retirement plan, where one exists, covers that paycheck. It does not cover 1099 income. Status as of Oct 28, 2026.
Does Pennsylvania tax 1099 income?
Pennsylvania's personal income tax is a flat 3.07% on eight classes of income, including net profits from a business. A loss in one class cannot offset income in another. Many municipalities and school districts also tax earned income under Act 32.
How much can a 1099 worker contribute in 2026?
For 2026 the IRA limit is $7,500, or $8,600 at age 50 or older. A Solo 401(k) elective deferral is $24,500, plus a catch-up of $8,000 at 50 or older, or $11,250 instead at ages 60 through 63. Employer contributions plus deferrals are limited to $72,000 of annual additions, not counting catch-up. A SEP contribution is generally up to 25% of compensation, inside that same annual-additions cap. These figures are from IRS news release IR-2025-111, Notice 2025-67, and the IRS 401(k) contribution-limits page.
Is Keystone Saves law?
No. House Bill 1263 would establish the Keystone Saves Program. The Pennsylvania General Assembly record shows the House passed it 102-101 on May 13, 2025, and the Senate referred it to the Finance Committee on May 22, 2025. That is the last action on the official bill page. Pennsylvania has no operating state auto-IRA.
Does Philadelphia's retirement program cover 1099 contractors?
The enacted ordinance covers employees, not independent contractors. Covered employers facilitate payroll deductions for covered employees unless the employer already offers a qualified retirement plan. The code tells the board to advise City Council on a possible later expansion to self-employed independent contractors. Contributions are to be available no later than July 1, 2027. A Philadelphia 1099 worker is outside that payroll rule.
Sources
Status as of Oct 28, 2026. Verified 2026-10-28.
Educational information only, not tax or investment advice. Gigaverse AI, Inc. is not a bank and is not a registered investment adviser. We are not affiliated with Pennsylvania, DoorDash, or any state or city retirement program. Contribution limits are set by the IRS and can change.