> You should open a SEP-IRA, which is a special account type that is similar to a 401k in mechanics but has very, very generous funding limits. Actually, both

> You should open a SEP-IRA, which is a special account type that is similar to a 401k in mechanics but has very, very generous funding limits. Actually, both account types have the same yearly limit; it's just that the employer can contribute much more than the employee, and when self-employed you can contribute as the employer. In fact, the difference between SEP IRA and 401k is not the funding limits, but the fact that the SEP IRA allows only employer contributions. You can actually open a "solo 401k" for yourself if you are self-employed, and make both employer and employee contributions. That will let you put more money away for a given income than the SEP IRA, until you make 275k or so at which point you have hit the cap for both (and the cap is the same for both). Edit: Vanguard has a calculator to show the difference: https://personal.vanguard.com/us/SbsCalculatorController https://personal.vanguard.com/us/SbsCalculatorController