The Most Powerful Tax Tool Gig Workers Never Use
A SEP-IRA is available to any gig worker with 1099 income, and most never open one — not because it's a bad deal, but because nobody hands you a form for it the way an employer would with a 401(k).
How Much You Can Actually Contribute
Up to 25% of your net self-employment income, capped at $70,000 in 2025 (rising to $72,000 in 2026). On $40,000 of net gig income, that's up to $10,000 you can contribute — and deduct — in a single year.
The Double Benefit Most People Miss
Every dollar contributed reduces your taxable income for the year, and the money grows tax-deferred until you withdraw it in retirement. It's one of the only financial moves available to gig workers that pays off immediately and decades later at the same time.
Setting One Up Is Not Complicated
Any major brokerage — Fidelity, Schwab, Vanguard — lets you open a SEP-IRA online in about 10 minutes. There's no employer sign-off needed, no committee, no waiting period.
The Deadline Most Gig Workers Don't Know
Unlike many retirement accounts, a SEP-IRA can be opened and funded up until your tax filing deadline, including extensions — meaning a good year doesn't require a rushed decision before December 31.