In this episode...
You maxed out your Roth IRA and have more money available to save; so where should your money go next?
In this episode, Abby Morton, CFP®, starts by helping creators and business owners think through what the right next step is. Retirement accounts come with valuable tax benefits, but they also come with restrictions. Before choosing an account, Abby explains what to consider, including how much money is available to save, how consistent the business income is, and whether that money may be needed before retirement.
Then, she breaks down some of the most common retirement accounts available to business owners including the SEP IRA, Solo 401(k), SIMPLE IRA, and traditional 401(k) and explains the pros, cons, savings potential, and how having employees can change the decision.
If your business is growing and there’s more money available to save beyond the Roth IRA, this episode will help you understand your options and decide what your next step should be.
Key Moments:
00:00 — You Maxed Out Your Roth IRA. Now What?
02:05 — 3 Questions to Ask Before Choosing an Account
05:32 — Your Main Retirement Plan Options
07:13 — SEP IRA: Simple With High Savings Potential
08:45 — 401(k): More Flexibility
09:42 — SIMPLE IRA: An Option for Small Teams
11:20 — Comparing the Contribution Limits
13:17 — Where to Open Your Retirement Account
14:37 — Can You Contribute to Two 401(k)s?
15:53 — Which Retirement Account Is Right for You?
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Questions this episode answers...
I maxed out my Roth IRA. Where should I invest next?
If you’ve maxed out your Roth IRA and still have more money you want to save for retirement or you’ve reached the Roth IRA income limits, there are several retirement accounts that you can open now that you are a business owner. They are the SEP IRA, 401(k), or SIMPLE IRA. But before choosing an account, Abby recommends first deciding whether you actually want that money in a retirement account. Retirement accounts offer valuable tax advantages, but most also restrict access to the money until around age 59½. If you may need the money sooner, another type of account could make more sense.
What’s the difference between a SEP IRA, 401k, and SIMPLE IRA?
The biggest differences come down to who can contribute, how much you may be able to save, how much flexibility the plan gives you, and whether you have employees. A SEP IRA is the simplest option of the three. Only the employer contributes, it’s relatively easy to set up and administer, and it can allow for a high contribution amount (up to $72,000 in 2026). The downside is that if you have eligible employees, you generally have to contribute the same percentage of compensation for them that you contribute for yourself and they don’t have a way to contribute to the plan themselves. A 401k allows both employee and employer contributions and offers the most flexibility and a high contribution amount (up to $72,000 in 2026). A Solo 401k can be especially useful for business owners with no employees other than possibly a spouse, while a standard 401k can work well once you have employees. The tradeoff is that 401ks can come with more administrative requirements and higher costs. A SIMPLE IRA is designed to be a simpler, lower-cost option for businesses with employees. Both the employer and employee can contribute, but the savings potential is lower than with a SEP IRA or 401k, and employer contributions are generally required each year based on the plan’s contribution formula. So, in simple terms: SEP IRA = simple and employer-funded, 401k = most flexible and powerful, SIMPLE IRA = easier option for small teams.
How do I know which retirement account is best for my creator business?
Abby recommends starting with three questions: 1. Do you have or plan to have employees? 2. How much do you want to save each year? 3. How consistent is your business income? Those answers can quickly narrow down your options. SEP IRAs and Solo 401ks generally work better for business owners without employees, while SIMPLE IRAs and standard 401ks are more appropriate once employees enter the picture.
Should I open a retirement account if my creator income is inconsistent?
Maybe. All creators face inconsistent income, but how much your income fluctuates and how much you have leftover each month will likely be the determining factor. Abby suggests thinking about whether your business is consistently profitable and whether you regularly have money left over after your business and personal needs are covered. As a general guideline discussed in the episode, consistently having $10,000 or more per year that you want to save toward retirement may be a sign that it’s worth considering a business retirement plan. Flexibility matters too. Some retirement plans allow you to reduce or skip certain contributions during a bad year, while others can create ongoing contribution requirements.
Can I contribute to my corporate 401k and a Solo 401k I opened for my creator business?
Yes. If content creation is a side business and you also have a job with a workplace 401(k), you can contribute to both. The key is that the employee contribution limit applies across all of your 401(k) plans combined. For 2026, you can contribute up to $24,500 as an employee, no matter how many 401(k) plans you have. Where the Solo 401(k) can give you additional flexibility is through employer contributions from your creator business. Those contributions are separate from the $24,500 employee limit, which may allow you to save even more for retirement.