How to Build a Retirement Plan Without a 401(k)

 

English Alt Text: A four-panel comic where a financial advisor explains to a client how to save for retirement without a 401(k), covering IRAs, taxable brokerage accounts, automating savings, and managing expenses.

How to Build a Retirement Plan Without a 401(k)

Many people think a 401(k) is the cornerstone of retirement planning, but what if you don’t have access to one?

Whether you’re a freelancer, self-employed, or working for an employer that doesn’t offer a retirement plan, you can still build a robust retirement strategy.

This guide will walk you through the best tools and strategies to create a secure retirement without a 401(k).

Table of Contents

Understanding the Challenge

Without a 401(k), you don’t have the benefit of employer matching or high contribution limits.

However, you also gain flexibility and control over your investments, which can be a major advantage if you plan carefully.

Using IRAs Effectively

Individual Retirement Accounts (IRAs) are a key alternative to 401(k)s.

You can contribute up to $7,000 per year ($8,000 if over 50) as of 2025 into a traditional or Roth IRA.

Traditional IRAs offer tax-deferred growth, while Roth IRAs allow for tax-free withdrawals in retirement.

Start early to maximize compound growth, and consider a mix of both account types if eligible.

Taxable Brokerage Accounts

Taxable accounts don’t offer tax advantages, but they provide unmatched flexibility.

There are no contribution limits, and you can withdraw funds at any time (though you’ll pay capital gains taxes).

Use a diversified portfolio of stocks, bonds, ETFs, and mutual funds, and consider tax-efficient investing strategies like tax-loss harvesting.

HSAs and Roth Strategies

If you have a high-deductible health plan, an HSA (Health Savings Account) is a hidden gem.

It offers triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Additionally, Roth IRAs and Roth conversions can help create tax-free income in retirement.

Automating and Budgeting

Without payroll deductions, self-discipline becomes critical.

Set up automatic transfers to your retirement accounts each month to stay on track.

Use budgeting tools to identify savings opportunities and prioritize retirement contributions.

Final Thoughts

Building a retirement plan without a 401(k) is entirely possible—it just takes intention and strategy.

By combining IRAs, taxable accounts, HSAs, and disciplined saving, you can secure your future and gain flexibility along the way.

Consider consulting a financial advisor to tailor a plan that fits your income, goals, and tax situation.

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Important keywords: retirement without 401(k), IRA strategy, brokerage accounts, HSA savings, retirement planning