If you’re a photographer earning income from your own business, you may be wondering about your retirement savings options. The good news is that a Solo 401k could be an effective way to save for the future while potentially lowering your tax bill.
This article explains who qualifies, how the plan works, and why it might be a smart choice for your photography business.
The Solo 401k Handbook
Everything you need to know about the most powerful retirement plan for business owners and the self-employed.
Can Photographers Get a Solo 401k?
Yes, self-employed photographers can qualify for a Solo 401k as long as they meet a few key requirements.
A Solo 401k, also called a one-participant 401k, is designed for individuals who work for themselves and have no full-time employees. That makes it a strong fit for photographers who run a solo business, take on freelance gigs, or operate through a sole proprietorship, LLC, or S corporation.
📝 Note: If you hire a full-time employee, your plan must include them. At that point, your plan would no longer qualify as a Solo 401k and would need to comply with different IRS rules.
Solo 401k Requirements for Photographers
To open a Solo 401k, you’ll need to meet the following criteria:
✅ Self-Employment Income: You must earn income from photography work, such as payments for photo shoots, event coverage, licensing, or client projects. Sole proprietors typically report this income on Schedule C. If you operate as an S corporation, the income should come from W-2 wages you pay yourself.
✅ No Full-Time Employees: Your business cannot have full-time employees (defined by the IRS as working 1,000 hours or more per year), unless that employee is your spouse. If you hire a full-time employee later, you may need to switch to a different type of 401k plan.
✅ Eligible Business Types: A Solo 401k may be available if you operate as a sole proprietor, partnership, LLC, or corporation — as long as you don’t have full-time employees.
📌 Also Read: Important Forms for Solo 401k Owners
Benefits of a Solo 401k for Photographers
A Solo 401k can offer several advantages for self-employed photographers looking to save for retirement:
1. Higher Contribution Limits
As both the employee and employer of your photography business, you can potentially contribute more to a Solo 401k than to other types of retirement plans.
📝 Note: Your contribution limit is based on your net self-employment earnings, calculated after deducting one-half of your self-employment tax and your own plan contributions.
2. Tax Advantages
Solo 401k plans generally offer both traditional and Roth contribution options:
✅ Traditional Solo 401k: Contributions are made before taxes, which may lower your taxable income for the year. You’ll pay taxes when you withdraw the money in retirement.
✅ Roth Solo 401k: Contributions are made after taxes. Qualified withdrawals in retirement are generally tax-free.
📝 Note: Choosing between traditional and Roth depends on your current tax rate and what you expect in retirement.
3. More Investment Options
A Solo 401k typically allows access to a broad range of investment choices — including stocks, bonds, mutual funds, and ETFs. Some plans may also permit alternative assets, such as real estate, depending on the provider.
📝 Note: Make sure all your investments follow IRS rules to avoid prohibited transactions.
4. Option to Include Your Spouse
If your spouse works for your photography business and earns income, they can also contribute to the plan. Each of you would be treated as a separate participant. That means both of you can make your own contributions to the plan.
✅ Both spouses must have eligible earned income from the business
✅ Each person’s contribution is based on their individual income
✅ Combined contributions may potentially double your household’s retirement savings
Keep in mind, contribution limits still apply and investment growth is never guaranteed. If you’re unsure how to structure contributions, it’s a good idea to speak with a tax or financial professional.
📝 Note: If your Solo 401k plan’s assets exceed $250,000, you’ll be required an annual IRS filing.
📌 Also Read: How to Add Your Spouse to Your Solo 401k Plan
Solo 401k Contribution Limits for 2025
For 2025, the IRS has updated the following Solo 401k contribution limits:
✅ Employee Contributions
- You may contribute up to $23,500 as an employee.
- If you’re age 50 or older, you can contribute an additional $7,500 in catch-up contributions, bringing the total to $31,000.
✅ Employer Contributions
- As the employer, you can contribute up to 25% of your compensation. For sole proprietors, this is based on net earnings after deducting half of your self-employment tax and contributions for yourself. For S corporation owners, it’s based on W-2 wages.
✅ Total Combined Limit
- The total combined contribution limit for 2025 is capped at $70,000.
- If you’re age 50 or older, this limit increases to $77,500 with catch-up contributions.
📝 Keep in Mind: Your exact contribution limits will vary depending on your income and how your business is structured. The IRS provides detailed guidance on calculating these amounts based on your specific situation.
📌 Also Read: What Are The Different Types Of Business Entities?
Conclusion: Is a Solo 401k a Good Option for Photographers?
A Solo 401k could be a practical way for self-employed photographers to save for retirement. It may give you the chance to set aside more than other plans, along with tax benefits and flexibility in how you invest.
At the same time, photographers should be aware of key responsibilities that come with managing this type of plan like paperwork, reporting requirements, and eligibility limits if you ever decide to hire full-time employees.
Whether a Solo 401k is the right fit depends on your income, business structure, and long-term financial goals. It’s generally a good idea to speak with a tax or financial professional who can help you decide if this plan aligns with your overall retirement strategy.
📌 Also Read: How to Open a 401k Without An Employer
Disclaimer:
The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.
The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.
To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form [ADV Part 2A] (https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=916200) brochure and [Form CRS] (https://reports.adviserinfo.sec.gov/crs/crs_323620.pdf) or through the SEC’s website at [www.adviserinfo.sec.gov] (http://www.adviserinfo.sec.gov/).