Which Retirement Account Is Best for Content Creators?

You're making good money as a creator. Maybe you crossed $50,000 this year. Maybe $200,000. Either way, you've realized something important: without an employer, you don't have a retirement plan like a 401(k)—and that means you're missing out on serious tax advantages.

The good news? Self-employed retirement accounts can actually be better than a traditional 401(k). You can contribute more money, get bigger tax deductions, and build wealth faster.

The question is: which account should you choose?

For most retirement accounts for creators, the decision comes down to two options: the SEP IRA and the Solo 401(k). Both are powerful. Both have unique advantages. And choosing the right one could save you tens of thousands of dollars over your career.

Let's break it down.

Retirement Accounts for Creators Comparison: SEP IRA vs Solo 401(k)

Feature	SEP IRA	Solo 401(k)
2026 Max Contribution	$72,000	$72,000 (or $80,000 if 50+)
Contribution Type	Employer only (25% of net self-employment income)	Employee + Employer
Roth Option	No	Yes
Loan Option	No	Yes (up to $50,000)
Paperwork	Minimal	More complex
Best For	Simple setup, high earners	Maximum flexibility, Roth contributions

How Contributions Work: The Key Difference

This is where most creators get confused—and where the right choice can save you thousands.

SEP IRA Contributions

With a SEP IRA, you contribute as the "employer." The limit is 25% of your net self-employment income (that's your profit minus half of self-employment tax).

Example: If your net self-employment income is $100,000, you can contribute up to $25,000.

The catch? You can't add more as an "employee." Your contribution is capped at 25%.

Solo 401(k) Contributions

A Solo 401(k) lets you contribute as both employee and employer:

Employee contribution: Up to $23,000 in 2024 (or $30,500 if you're 50+)

Plus employer contribution: Up to 25% of net self-employment income

Example: With the same $100,000 net income:

• Employee contribution: $23,000

• Employer contribution: $25,000

• Total: $48,000

That's almost double what you could put in a SEP IRA at the same income level.

When Each Account Makes Sense

Choose a SEP IRA if:

1. You want simplicity

A SEP IRA takes 10 minutes to open. There's no annual paperwork until your balance exceeds $250,000. You can set it up and forget it.

2. Your income is very high

Once your net self-employment income exceeds about $350,000, the contribution limits converge. At that point, both accounts max out at $69,000, and the SEP's simplicity wins.

3. You're opening an account last minute

SEP IRAs can be opened and funded up until your tax filing deadline (including extensions). Made a lot of money this year and need a tax deduction? You can open a SEP IRA in April and contribute for the previous year.

Choose a Solo 401(k) if:

1. Your income is under $350,000

This is most creators. The Solo 401(k) lets you shelter more money from taxes at every income level below this threshold.

2. You want Roth contributions

Only the Solo 401(k) offers a Roth option. This is huge if you expect your income to grow—you can pay taxes now at a lower rate and let the money grow tax-free forever.

3. You might need access to funds

Solo 401(k)s allow loans up to $50,000 or 50% of your balance. You pay yourself back with interest. SEP IRAs don't offer loans at all.

4. You're under 50 with moderate income

The $23,000 employee contribution is available regardless of your income. Even if you only profit $50,000, you can contribute $23,000 as an employee plus $12,500 as an employer—$35,500 total. A SEP IRA would cap you at $12,500.

Real Numbers: Contribution Comparison by Income

Here's what you can actually contribute at different income levels:

Self-Employment Income	SEP IRA Max	Solo 401(k) Max	Difference
$50,000	$12,500	$35,500	+$23,000
$75,000	$18,750	$41,750	+$23,000
$100,000	$25,000	$48,000	+$23,000
$150,000	$37,500	$60,500	+$23,000
$200,000	$50,000	$69,000	+$19,000
$300,000	$69,000	$69,000	$0

The pattern is clear: at incomes under $300,000, the Solo 401(k) lets you contribute significantly more.

The Roth Advantage: Why It Matters for Creators

Here's something most financial advice misses: many creators are in a lower tax bracket now than they will be later.

Think about it. You're building an audience. Your income is growing. In five years, you might be earning 3x what you earn today.

Traditional retirement account advice says "take the deduction now." But if you're in the 22% bracket today and the 35% bracket in ten years, a Roth contribution saves you money.

With a Roth Solo 401(k):

• You pay taxes on contributions today (at your current lower rate)

• Your money grows tax-free

• You pay zero taxes on withdrawals in retirement

The SEP IRA doesn't offer this option. Every contribution is pre-tax, meaning you'll pay taxes on every dollar you withdraw—at whatever rate applies in the future.

For young creators with growing incomes, the Roth Solo 401(k) can be worth hundreds of thousands of dollars over a career.

The Paperwork Reality

Let's be honest: the Solo 401(k) requires more administrative work.

SEP IRA paperwork:

• Open account (one-time)

• File Form 5498 (your custodian does this automatically)

• That's it until your balance exceeds $250,000

Solo 401(k) paperwork:

• Open account (one-time)

• Adopt a plan document (one-time)

• File Form 5500-EZ annually once assets exceed $250,000

• Track employee and employer contributions separately

Is it complicated? Not really—maybe an extra hour per year. But if you want absolute simplicity, the SEP IRA wins.

What About a Regular Roth IRA?

Quick note: you can (and probably should) also contribute to a Roth IRA if your income allows. The 2024 limit is $7,000 ($8,000 if you're 50+).

This is in addition to your SEP or Solo 401(k). Think of it as a bonus retirement account.

Income limits apply: You can't contribute directly to a Roth IRA if your modified AGI exceeds $161,000 (single) or $240,000 (married filing jointly). But there's a workaround called a "backdoor Roth IRA"—ask us how.

How OnlyFunds Helps You Optimize

Choosing between a SEP IRA and Solo 401(k) is just the first decision. The real optimization comes from:

• Timing contributions to maximize tax efficiency

• Balancing Roth vs traditional based on your current and projected income

• Coordinating with quarterly taxes so you don't over-save or under-save

• Adjusting as your income grows and your optimal strategy changes

OnlyFunds is built to make this simple. Our platform helps creators:

• Project tax savings across account types

• Time contributions around irregular income

• Track progress toward retirement goals

Action Steps

1. Determine your net self-employment income

This is your profit minus half of self-employment tax. Your tax software or accountant can calculate this.

2. Run the numbers

Use the table above to see how much more you could contribute with a Solo 401(k).

3. Consider your tax trajectory

Are you earning less now than you expect to in 10 years? The Roth option might be worth the Solo 401(k)'s extra paperwork.

4. Open your account

Solo 401(k)s must be established by December 31 of the tax year (though you can fund them until your filing deadline). SEP IRAs can be opened until your filing deadline.

5. Maximize your contributions

Don't leave tax-advantaged space on the table. Every dollar you can shelter from taxes is a dollar that compounds faster.

The Bottom Line

For most content creators earning under $300,000, the Solo 401(k) is the better choice. You can contribute more money, access Roth contributions, and borrow against your balance if needed.

But if simplicity is your priority or your income is very high, the SEP IRA gets the job done with less hassle.

Either way, the most important thing is to start. The tax savings from these accounts compound over time—and every year you wait is money left on the table.