Turn Self-Employment Into a Real Retirement Strategy
Most therapists don’t have an employer-sponsored plan. This is how to set up SEP IRA, Solo 401(k), or IRA savings and actually keep funding them.
No employer is setting up a match or auto-enrolling you into anything. That’s the whole reason this list exists: without a deliberate plan, retirement savings for a self-employed therapist tends to happen only when there’s money left over, which is a plan that fails most years. Five steps: set your goals, choose your accounts, automate the transfers, protect what you’ve built, and bring in the professionals who can actually optimize it.
1 Set Your Retirement Goals
2 Choose Your Retirement Accounts
3 Automate Savings
4 Protect Your Savings
5 Work With Professionals
This applies whether you’re a therapist, psychologist, licensed clinical social worker, professional counselor, or marriage and family therapist — any self-employed or 1099-based mental health provider.
Questions we get a lot
A SEP IRA, a Solo 401(k), and a Traditional or Roth IRA are the most common options. A Solo 401(k) generally allows the highest contributions since it combines an employee deferral with an employer profit-sharing contribution, while a SEP IRA is simpler to administer but caps out lower at the same income level.
SEP IRA: up to 25% of net self-employment income, maximum $72,000. Solo 401(k): $72,000 combined limit under age 50, $80,000 with the standard catch-up (ages 50–59 and 64+), or up to $83,250 for ages 60–63 using the SECURE 2.0 super catch-up.
$7,500 for those under 50, or $8,600 for those 50 and older. Roth IRA eligibility phases out above certain income levels, so check current thresholds before assuming you qualify to contribute directly.
A Solo 401(k) usually allows higher contributions at moderate income levels because of the employee deferral portion, and it offers a Roth option that a SEP IRA doesn’t. A SEP IRA is simpler to set up and maintain, which matters if a Solo 401(k)’s reporting requirements feel like more than you want to manage.
The earlier you start, the more options you’ll have.
If you’re not sure which account fits your situation, we can walk through the numbers with you.
Disclaimer: This checklist is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, federal and state laws and regulations can change without notice. Decisions based on this information should be made in consultation with a licensed CPA or attorney familiar with your specific situation. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this checklist.