Looking for retirement investment options beyond the usual 401(k)? Whether your employer doesn’t offer a plan or you want to diversify, there are plenty of tax-advantaged paths to explore. This guide covers everything—from what is the best retirement plan for different situations to how to open a 401k without an employer, 401k alternatives, and retirement accounts for high earners. You’ll learn practical retirement planning basics, investment options for retirement, and retirement income planning strategies—all served in clear, human-friendly language.
Why Explore retirement investment options Outside 401(k)s?
Most people start with a 401(k), but it’s not your only choice. Whether you’re self-employed, work for an employer without a plan, or want more flexibility, exploring retirement investment options beyond a 401(k) opens doors.
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- Limited investment menu, high fees, or lack of portability of 401(k)s can hamper your goals.
- After maxing out a 401(k), you’re still limited on how to invest more for retirement.
Tax-Advantaged retirement investment options Outside 401(k)s
Traditional IRA & Roth IRA
- Traditional IRA offers deferred tax growth, taxed upon withdrawal; contributions may be tax-deductible depending on income and coverage.
- Roth IRA: After-tax contributions, with tax-free growth and withdrawals—no required minimum distributions in your lifetime.
Key advantage: great flexibility, tax strategy variation (i.e. tax-free later vs tax-deferred now).
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SEP IRA, Solo 401(k), and Keogh Plan
Designed for self-employed or small-business owners:
- SEP IRA: higher contribution limits based on business income.
- Solo 401(k): contribute as both employee and employer, high limits.
- Keogh Plan: defined-benefit or defined-contribution options for the self-employed.
403(b) and 457(b) Plans
- 403(b): for nonprofit and public education sector—similar to 401(k) but additional mutual fund option.
- 457(b): for government employees, no early-withdrawal penalty before 59½; can include Roth contributions.
Health Savings Account (HSA)
Often overlooked but triple tax-advantaged: pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses; post-65 funds can fund retirement healthcare.
Annuities
Annuities offer guaranteed income and tax-deferred growth. Good for retirement income planning strategies, but often come with high fees and limited liquidity.
Non-Tax-Advantaged Yet Valuable Paths
Taxable Brokerage Accounts
Flexible and powerful for high-earning savers. No limits or penalties; capital gains taxed favorably; no required distributions; stepped-up basis benefits heirs.
Real Estate & Other Investments
Consider real estate (including REITs), small business investments, or other alternative assets. They diversify and can yield strong returns, though they carry risk.
How to Choose the best retirement plan for You
- Employer match? Prioritize 401(k) to get free money.
- Do you have a workplace plan at all—if not, consider Roth IRA or SEP IRA.
- Are you self-employed? Explore Solo 401(k), SEP IRA, or Keogh.
- Want flexibility or saving beyond limits? Use taxable brokerage or alternative assets.
- Early retiree or tax planner? Lean on HSAs, Roth IRAs, tax diversification.
- Want guaranteed income? Add annuities—but be wary of fees.
Quick Comparison Table
| Account Type | Tax Treatment | Best For |
|---|---|---|
| Traditional IRA | Tax-deferred growth, taxed at withdrawal | Lower-income savers wanting deductions |
| Roth IRA | After-tax contributions, tax-free withdrawals | Flexible, tax-free growth and withdrawals |
| SEP IRA / Solo 401(k) / Keogh | Tax-deferred, high limits | Self-employed / small business owners |
| 403(b) / 457(b) | Tax-deferred | Nonprofit / government / education workers |
| HSA | Triple tax benefit | Health costs & extra retirement boost |
| Annuity | Tax-deferred income | Guaranteed income planners |
| Brokerage / Alternatives | Taxable capital gains/dividends | High earners & flexible investors |
How to open a 401k without an employer (solo-style)
- Set up a Solo 401(k) if you’re self-employed—open through brokerages like Fidelity / Vanguard; file paperwork and begin contributions.
- Or roll over old employer 401(k)s into IRAs to consolidate and maintain tax advantage.
Retirement accounts for high earners
- If Roth IRA eligibility is restricted by income, consider Roth conversions or backdoor Roth IRAs (not detailed above but common strategy).
- Use SEP IRAs, Solo 401(k)s, HSAs, and taxable accounts to stack contribution
- Tax diversification safeguards against future law changes.
Retirement income planning strategies
- Diversify account types: Roth (tax-free), Traditional (taxable), brokerage (capital gains).
- Use HSAs for health cost planning.
- Add annuities if you want guaranteed streams.
- Draw from different accounts strategically in retirement to manage taxes and cash flow.
How to save for retirement when you’re 50 and no retirement savings
- Use catch-up contributions: IRAs can allow up to $8,000 (2025), and 401(k)s up to $34,750 (for ages 60–63) Investopedia
- Maximize HSAs, roll over previous work plans, invest aggressively early.
- Use brokerage and Roth vehicles to boost growth in your shorter timeframe.
Additional investment options for retirement
- Certificates of deposit (CDs), high-yield savings, money market accounts for safe, short-term parking.
- Micro-investing apps like Acorns for gradual saves.
Warnings and Best Practices
- Don’t neglect employer 401(k) match by over-investing elsewhere.
- Be mindful of tax implications before withdrawal or frequent trading.
- Watch fees on annuities or alternative investments.
Summary Table (HTML)
| Scenario | Recommended Account(s) |
|---|---|
| No employer plan | Roth IRA, Traditional IRA, HSA |
| Self-employed | Solo 401(k), SEP IRA, Keogh |
| Nonprofit/government | 403(b), 457(b) |
| High contributor or late starter | Catch-up provisions, taxable brokerage |
| Want guaranteed income | Annuity |
FAQs (10 Questions, each 100+ words)
1. What are the most tax-advantaged retirement savings options besides a 401(k)?
Beyond a 401(k), you can use Traditional IRAs (tax-deductible contributions with tax-deferred growth), Roth IRAs (after-tax contributions with tax-free growth and withdrawals), HSAs (triple tax advantage), SEP IRAs, Solo 401(k)s, 403(b)s, and 457(b)s. Each offers unique benefits—limitations, flexibility, eligibility, and contribution limits differ. For example, Roth IRAs don’t require minimum distributions and HSAs are great if you want health-focused savings that can double for retirement. Choosing depends on your employment, self-employment status, income level, and retirement timeline.
2. How to save for retirement without a 401k?
If your employer doesn’t offer a 401(k), open a Roth IRA or Traditional IRA directly via a brokerage or bank. A Roth IRA is particularly popular due to tax-free withdrawals in retirement. If you’re self-employed, consider a Solo 401(k) or SEP IRA to maximize contributions. Don’t forget HSAs if eligible. You can also invest using taxable brokerage accounts, CDs, or alternative assets for additional growth and flexibility. Diversifying across account types helps spread tax risk and access in retirement.
3. Investment options for retirement for high-income earners?
High earners may exceed Roth IRA eligibility. Strategies include using SEP IRAs, Solo 401(k)s, and maxing out HSAs and Traditional IRAs. Taxable brokerage accounts allow unlimited investing with no restrictions. Convert Traditional to Roth via “backdoor” methods if needed. Diversification across tax treatments offers greater flexibility in retirement. High earners can also explore annuities or alternative investments for income security, though fees must be considered carefully.
4. Which retirement plan is best for self-employed individuals?
Self-employed folks should weigh contributions, complexity, and flexibility. SEP IRAs are easy to set up and allow high contributions. Solo 401(k)s permit higher total contributions (as both employee and employer), especially beneficial in high-income years. Keogh plans are more complex but offer structured defined-benefit options. Choose based on desired contribution limits, administrative ease, and tax strategy. Speak to a financial advisor to select the ideal plan for your business.
5. How to open a 401k without employer?
You can’t open a standard employer-sponsored 401(k) without a job, but you can set up a Solo 401(k) if you’re self-employed with no employees (besides maybe a spouse). Major brokerages offer easy setup—open the account, designate your structure, and contribute as both employer and employee. Another route is rolling over a previous employer 401(k) into a Traditional or Roth IRA to keep tax advantages and consolidate savings.
6. What are 401k alternatives if I’m freelancing?
Freelancers should consider a Solo 401(k) or SEP IRA for higher contributions and tax advantages. Roth IRAs and HSAs complement the tax strategy. Taxable brokerage accounts allow flexibility for retirement or other goals. For stable income in retirement, low-cost annuities can help. Together, these options form a robust blend of growth, flexibility, and tax planning.
7. How do HSAs help with retirement planning?
HSAs provide a triple tax advantage: pre-tax contributions, tax-free growth, and tax-free medical withdrawals. After turning 65, HSA funds can be used for non-medical expenses (taxed like a Traditional IRA), offering added retirement flexibility. They’re great supplements to retirement savings, especially if you remain healthy and leverage them strategically.
8. Should I invest for retirement in a taxable brokerage account?
Yes—taxable accounts are flexible, have no contribution limits, and offer favorable capital gains rates. There are no early withdrawal penalties or required distributions, making them ideal for early retirees or those managing cash flow during retirement. They also offer estate planning benefits through stepped-up basis rules. Just manage taxes on dividends and gains smartly.
9. Are annuities a good addition to retirement planning?
Annuities can provide guaranteed income and protect against outliving assets—very useful in retirement income planning. However, they often carry high fees, surrender charges, and limited liquidity. Use them selectively, often as a small portion of a diversified retirement portfolio to balance growth from IRAs, brokerage accounts, and HSAs.
10. How do I learn about retirement planning?
Start with authorities like IRS, Vanguard, Fidelity, and government retirement information portals. Read reputable financial news, books, and online courses. Use tools like contribution calculators and retirement check-ups. Consider consulting with a fee-only financial advisor. Follow guides on blog posts and organizations like U.S. News, Schwab, or Kiplinger to stay informed and disciplined.
Additional References
- Schwab on savings outside 401(k)s. Schwab Brokerage
- U.S. News on saving without a 401(k). U.S. News Money
- Investopedia comparison of annuities, 401(k)s, IRAs. Investopedia
- Kiplinger on Roth IRAs. Kiplinger
- Forbes and Fidelity discussion on brokerage accounts. ForbesFidelity