How To Save For Retirement Without a 401k
For many professionals, the traditional retirement story goes something like this: go to school (for me, it was dental school), work hard, contribute to your 401(k), and hope everything works out by the time you reach your golden years.
But for high earners, business owners, and self-employed professionals, that story often feels incomplete.
Maybe your employer-sponsored retirement plan has limited investment options. Maybe your income is too high to take full advantage of certain tax benefits. Maybe your employer does NOT offer a 401k plan.
Or maybe you’re simply looking for better ways to build long-term financial security beyond a single account.
The good news? You have far more options than most people realize.
Let’s walk through the smartest ways to save for retirement without relying entirely on a 401(k), while keeping taxes low and flexibility high.
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Why a 401(k) Isn’t Always Enough
A 401(k) can be a great starting point, but it isn’t a perfect solution for everyone.
Many plans limit how much you can contribute each year, even if you earn a high income. Others restrict investment options to a small menu of mutual funds. And once your money is inside the plan, access is limited unless you’re willing to pay penalties or taxes.
If you’re self-employed, own a business, or earn a high income, those limitations can feel especially frustrating.
That’s why many people look beyond a traditional employer-sponsored retirement plan and build a more flexible system that fits their lifestyle and income.
| Plan / Account |
2026 Limit |
2025 Limit |
| 401(k), 403(b), 457(b) Elective Deferral |
$24,500 |
$23,500 |
| IRA (Traditional & Roth) Contribution |
$7,500 |
$7,000 |
| SIMPLE IRA Contribution |
$17,000 |
$16,500 |
| Defined Contribution Plan Annual Limit |
$72,000 |
$70,000 |
| Defined Benefit Plan Annual Limit |
$290,000 |
$280,000 |
Individual Retirement Accounts (IRAs)
An individual retirement account (IRA) is often the first place people turn when they want to save outside a 401(k).
Traditional IRA
A traditional IRA allows you to make pre-tax contributions, which can reduce your taxable income for the year. This is especially helpful if you’re in a higher tax bracket and want to lower your current tax bill.
The trade-off is that you’ll pay income taxes when you withdraw the money later. Required minimum distributions (RMDs) also apply once you reach a certain age.
For many people, a traditional IRA is a straightforward way to begin building a long-term nest egg.
Roth IRA
A Roth IRA works differently. Contributions are made with after-tax dollars, but withdrawals in retirement are tax-free.
This can be a significant advantage if you anticipate your income will increase over time or if you want greater certainty about your future tax bill. Many high earners use Roth IRAs as a hedge against rising tax rates.
Income limits apply, but there are strategies—such as backdoor Roth conversions—that may still allow participation.
SEP IRAs and SIMPLE IRAs for Business Owners
If you’re self-employed or operate a small business, you have access to retirement tools designed specifically for your situation.
SEP IRA
A Simplified Employee Pension (SEP) IRA allows business owners to contribute a percentage of their income—often much more than a traditional IRA allows.
SEP IRAs are popular among consultants and solo entrepreneurs because they are simple to administer and allow large annual contributions. Contributions are tax-deductible, reducing your taxable income.
SIMPLE IRA
A SIMPLE IRA is designed for small businesses with employees. It allows both employee and employer contributions and is easier to manage than a traditional 401(k).
While contribution limits are lower than a SEP IRA, a SIMPLE IRA can still be a powerful tool for retirement savings, especially for growing companies.
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Health Savings Accounts
Health Savings Accounts (HSAs) are often misunderstood, but they may be one of the most powerful tools available for retirement planning.
If you’re enrolled in a high-deductible health plan, you can contribute to an HSA using pre-tax dollars. That money grows tax-free, and withdrawals used for qualified medical expenses are also tax-free.
This triple tax advantage makes HSAs unique. Many people treat them as a long-term investment account rather than spending them right away (what I’m currently doing).
Over time, an HSA can become a valuable source of tax-free income in retirement, especially for healthcare costs.
Related: Health Savings Accounts: What Are the Pros and Cons of HSAs?
Taxable Investment Accounts
A taxable brokerage account (we use Vanguard) doesn’t offer the same tax benefits as retirement accounts, but it plays an important role in a well-rounded plan.
There are no contribution limits, no required distributions, and no age restrictions. You can invest in mutual funds, exchange-traded funds, individual stocks, or real estate investment trusts.
Taxable accounts are especially useful if you plan to retire early or want access to funds before traditional retirement age. They offer flexibility that retirement accounts simply can’t.
If you follow what most advisors tell you, then you’ll have to work until you’re at least 59.5 when you can access your money. That NEVER sat well with me and I decided to start investing in taxable accounts + my favorite investment….real estate.
Real Estate as a Long-Term Strategy
Real estate is one of the most powerful tools for building long-term wealth.
Whether through direct ownership, real estate syndications, or real estate investment trusts, real estate can provide steady income, appreciation, and tax advantages. Depreciation can offset income, reducing your tax bill while allowing your property to generate cash flow.
For many high-income professionals, real estate becomes a cornerstone of their retirement strategy.
Understanding Taxes and Your Retirement Plan
Taxes play a major role in determining how much of your money you actually keep. In my opinion, it’s one of the two biggest reasons people prolong retirement (#1 reason is “Will I run out of money?”)
Different accounts are taxed in different ways:
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Pre-tax accounts reduce your current taxable income.
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Roth-style accounts offer tax-free withdrawals.
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Taxable accounts provide flexibility but require careful planning.
Understanding how income taxes, capital gains, and required distributions work together is essential for building an effective long-term strategy.
Working With Professionals
Because retirement planning involves taxes, investments, and long-term projections, working with a knowledgeable financial advisor or tax professional can be invaluable.
A good advisor can help you:
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Choose the right mix of accounts
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Understand contribution limits
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Optimize tax efficiency
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Adjust your strategy as your income and goals change
This guidance can help you avoid costly mistakes and stay on track.
Building a Strong Financial Future
The best retirement plans don’t rely on a single account or strategy. They combine multiple tools—IRAs, HSAs, taxable accounts, real estate, and employer plans—to create flexibility and resilience.
The goal isn’t just to retire. It’s to build financial security, freedom, and peace of mind.
By understanding your options and making informed decisions, you can create a retirement strategy that works for your life—not just one that follows a generic formula.
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