The creator economy continues to grow rapidly. Millions of people now earn a living by producing content on platforms like YouTube, TikTok, and Instagram. A global 2022 study found that roughly 30% of people aged 18-24 and about 40% of those aged 25-34 considered themselves creators, adding up to nearly 200 million worldwide.

Creating content for a living can be rewarding, but it also means managing everything on your own, including retirement planning. Without access to an employer-sponsored 401k, many creators ask the same question: How do I save for retirement when I’m self-employed?

The good news is that several retirement plans are designed for independent professionals and small business owners, including YouTubers, influencers, and creators. 

Below, we’ll explore the most common options, how they work, and what to consider when choosing one that fits your financial goals.

📌 Also read: 2025 Gig Economy Trends for Freelancers and Self-Employed Workers

Open a Solo 401k with Carry
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Looking to Open a Solo 401k Plan?

Get started today with just a few clicks – The Carry Solo 401k Plan is a featured-packed self-directed account that lets you invest in both traditional and alternative assets, take out a loan, or do a Mega Backdoor Roth conversion with a few clicks.

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Solo 401(k) eligibility and contribution limits depend on IRS rules. Carry does not provide tax advice, consult a tax advisor. Carry Advisors LLC, an SEC-registered investment adviser, provides investment advisory services for discretionary and non-discretionary accounts (e.g., Solo 401(k), IRA, taxable brokerage accounts). Bank and trust accounts are not advised by Carry Advisors. Brokerage accounts are introduced by Global Carry LLC and carried by DriveWealth LLC, both members FINRA/SIPC. Advisory fees may apply and additional disclosures are described in our Form ADV and CRS.

Solo 401k

Many people first learn about a 401k through a traditional employer plan. If your  company offers one, you can contribute part of your salary to save for retirement. The challenge for YouTubers, influencers, and other independent creators is that employer plans aren’t available to them.

Fortunately, self-employed individuals can set up their own version of this plan — the Solo 401k. It’s designed for small business owners or self-employed professionals with no full-time employees. In this setup, you act as both employer and employee, giving you full control over contributions and investments.

Eligibility

To open a Solo 401k, you must have self-employment income and no employees who must be covered by the plan. A spouse who works in the business may also participate.

Basic eligibility rules

✅ You must have self-employment activity that produces net earnings (plan compensation).

✅ You must not have employees who meet the long-term, part-time (LTPT) rule. Beginning in 2025, an employee age 21 or older who works at least 500 hours in two consecutive years generally qualifies and would make your plan no longer a “one-participant” 401k.

✅ A spouse who works in your business may be included in the plan.

Workers you can exclude (if they don’t meet the eligibility thresholds):

✅ Employees under age 21
✅ Part-time employees who do not meet the 500-hour rule
✅ 1099 contractors (independent contractors are not considered employees)
✅ Union employees covered by a collective bargaining agreement (if plan terms allow)
✅ Nonresident alien employees with no U.S.-source income

📝 Note: Once an employee meets the long-term part-time rule, your plan will no longer qualify as a Solo 401k. You may then need to transition to a traditional 401k structure.

Features and Tax Benefits

A Solo 401k can offer some of the highest contribution limits and most flexible investment options available for independent professionals. Below are its key features and tax advantages.

High contribution limits

For 2025, the total combined limit for employee and employer contributions is up to $70,000.

  • Employee elective deferrals: up to $23,500
  • Catch-up contribution: an additional $7,500 for those age 50 or older
  • Special catch-up: up to $11,250 for ages 60 to 63 (if your plan allows)

Flexible tax treatment

  • Pre-tax contributions grow tax-deferred until withdrawn.
  • Designated Roth contributions can grow tax-free if you meet qualified distribution rules (after age 59½ and at least five tax years after your first Roth contribution).

Roth and Mega Backdoor Roth options

Some Solo 401k plans include a Roth option, letting you contribute after-tax dollars for potential tax-free withdrawals later.

If your plan supports after-tax contributions and in-plan Roth rollovers, you can use a Mega Backdoor Roth strategy. For 2025, total contributions (pre-tax, Roth, and after-tax combined) are capped at $70,000, plus catch-up contributions if eligible.

Tax deductions (pre-tax)

Your pre-tax contributions may be deductible based on your net earnings and IRS rules. These deductions can reduce your taxable income within annual limits.

Investment flexibility

Depending on the provider, you may invest in a wide range of asset types, including stocks, bonds, and certain private funds. However, you must follow IRS prohibited transaction and collectible rules.

Rollovers

You can move funds from another eligible retirement plan into your Solo 401k through a direct rollover (trustee-to-trustee transfer). These rollovers do not count toward your annual contribution limit.

Loan option

You may borrow up to 50% of your plan balance or a maximum of $50,000, whichever is less. These loans generally do not require a credit check and do not affect your credit score.

📝 Note: Not all Solo 401k plan providers offer all of the features below. You can compare the best Solo 401k providers here, or learn more about the Carry Solo 401k.

How to Open a Solo 401k

Setting up a Solo 401k is generally straightforward. Here’s how the process usually works:

Step 1: Choose a plan provider. Compare options based on fees, investment choices, and included features.

Step 2: Obtain an Employer Identification Number (EIN). You’ll need this for your business and for your Solo 401k trust.

Step 3: Complete the application and adoption agreement. These documents officially establish your plan.

Step 4: Open bank or brokerage accounts in the name of your Solo 401k trust.

Step 5: Fund your account by making contributions or rolling over eligible funds.

Step 6: Start investing based on your risk tolerance and long-term goals.

Having direct account control (also called “checkbook control”) means you can hold a bank or brokerage account in your plan’s name and make investments or write checks yourself without waiting for custodian approval.

SEP IRA

A Solo 401k is typically the most flexible retirement plan for YouTubers, influencers, and creators. However, if you hire employees and lose “solo” status, a SEP IRA could be the next option to consider.

A SEP IRA (Simplified Employee Pension) is designed for business owners who want to save for retirement and include their employees in the plan. It offers higher contribution limits than a Traditional or Roth IRA but comes with some key differences compared to a Solo 401k.

What a SEP IRA Doesn’t Offer Compared to a Solo 401k

Limited Roth Option

Thanks to the SECURE 2.0 Act, employers can now offer Roth SEP contributions if the plan allows it. However, not all custodians support this feature yet, and Roth contributions must still follow Roth tax rules.

No Catch-Up Contributions

Contribution limits for SEP IRAs and Solo 401ks are the same if you’re under 50. But the Solo 401k gives those aged 50 or older an extra $7,500 in catch-up contributions each year. A SEP IRA does not have this feature.

Investment Flexibility

A SEP IRA is funded through an IRA account (called a SEP-IRA). These accounts can typically hold a wide range of assets if the custodian allows it. However, standard IRA restrictions apply, such as prohibited transactions and collectible rules.

No Loan Option

Solo 401k participants can borrow up to 50% of their plan value, up to $50,000. SEP IRAs do not allow loans.

Employer-Only Contributions

With a Solo 401k, you contribute as both the employee and the employer, giving you more room to save and reduce taxes. A SEP IRA only allows employer contributions. That means you’ll need higher business income to reach the maximum contribution limit.

Employer Contribution Rules

Under a SEP IRA, you must contribute the same percentage of compensation for all eligible employees, including yourself.

✏️ Hypothetical Example: 

If you contribute 10% of your own compensation, you must also contribute 10% for each eligible employee.

📌 Eligibility Reminder

An employee generally qualifies for a SEP IRA if they:

  • Are at least 21 years old
  • Worked for you in at least three of the last five years
  • Earned at least $750 in compensation for 2025

IRAs (Traditional & Roth)

YouTubers, influencers, and creators can also save for retirement through Individual Retirement Accounts (IRAs), specifically a Traditional IRA or a Roth IRA. These accounts are among the easiest to open since they’re available to anyone with earned income, regardless of whether you’re self-employed or have another retirement plan.

For 2025, you can contribute up to $7,000 to an IRA, or $8,000 if you’re age 50 or older. These limits apply separately from your Solo 401k or SEP IRA contributions.

Even if you already have a Solo 401k or SEP IRA, it generally makes sense to open a Traditional or Roth IRA as well. It usually takes less than 10 minutes to open one, and most platforms (such as Carry or your preferred provider) allow you to complete the entire process online.

Traditional IRA vs. Roth IRA

The main difference between a Traditional and Roth IRA lies in how your contributions and withdrawals are taxed.

Traditional IRA

Contributions may be tax-deductible depending on income, tax filing status, and whether you or your spouse are covered by a workplace retirement plan. Deductible contributions lower your taxable income today, but withdrawals in retirement are taxed as ordinary income.

Roth IRA

Roth contributions are made with after-tax dollars. Qualified withdrawals—those made after age 59½ and after a five-tax-year period—are tax-free. This means you pay taxes upfront but can withdraw both contributions and earnings tax-free later.

📝 Important: Roth IRAs have income limits. If your income exceeds the threshold, you may not qualify to contribute directly. Check the most recent Roth IRA income limits for your filing status before contributing.

Contribution Rules

Your annual limit applies to the total amount you contribute across all IRAs combined. You can contribute to both a Traditional and Roth IRA in the same tax year, but your total combined contributions for 2025 cannot exceed $7,000 (or $8,000 if you’re age 50+). You can learn more about Roth IRA income limits here.

✏️ Hypothetical Example: 

If you put $5,000 into a Traditional IRA, you’ll have $2,000 left to contribute to your Roth IRA that year.

📌 Also read: Roth IRA Vs Traditional IRA: Key Differences & Similarities

Final Thoughts

Creators have more retirement options than they might think. The key is to choose a plan that fits your income level, business structure, and long-term goals.

Start by reviewing how consistent your earnings are and whether you plan to hire employees in the future. Those two factors often determine which plan makes the most sense.

It also helps to compare features like contribution flexibility, Roth availability, and investment options across providers. Setting up a plan early — even with small contributions — can make it easier to build steady retirement savings over time.

FREE PDF DOWNLOAD

The Solo 401k Handbook

Everything you need to know in a handy ebook format.



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 brochure and Form CRS or through the SEC’s website at www.adviserinfo.sec.gov.