Thinking About Starting a Business? Let’s Talk Benefits, 401(k)s, and a Smarter Retirement Option You May Not Know About

Some of you are thinking about launching a side hustle or even stepping fully into self-employment — but there’s one fear that keeps popping up: “If I leave my job, I’ll lose my benefits… especially my ability to contribute to a 401(k).”

That concern is real. A traditional employer-sponsored 401(k) does disappear the moment you’re no longer on their payroll. But here’s the part most people don’t realize:

Self-employed people often get access to better retirement contribution option. One of the strongest tools is the SEP-IRA (Simplified Employee Pension Plan).

Let’s break it down plainly.

Why a SEP-IRA Is a Power Move for the Self-Employed:

A SEP-IRA lets you contribute up to 25% of your net self-employment income, with a maximum contribution limit that blows most employer 401(k)s out of the water.

Most job-based 401(k)s cap you at $23,000 in employee contributions (2025 numbers).
A SEP-IRA can let you put in up to $69,000 (depending on income).

No match. No HR department. No need for a company plan. Just you — contributing far more than the average employee ever could.

How It Works (Without the IRS Jargon):

You open a SEP-IRA at Fidelity, Vanguard, Schwab, etc.
Your “business” (even a sole proprietorship) makes the contribution on your behalf.
You determine your allowable amount (roughly 25% of net profit after expenses).
You only contribute for yourself unless you hire employees — simple and clean.
Contributions are tax-deductible, meaning your taxable income drops, and you keep more money in your pocket long-term.

Translation: You don’t lose retirement benefits by becoming self-employed — you unlock the ability to build wealth even faster if you play it right.

Why This Matters for Our Community:

Financial freedom means options. Starting a business is one of the strongest ways to create those options — but only if you understand how to protect and grow your future at the same time.

If you’re thinking about entrepreneurship but worried about losing benefits, don’t just freeze. Learn the tools available to you. Get informed. Then move with confidence.

Drop your questions, concerns, or business ideas in the discussion. Let’s talk through it together so you don’t leave opportunity on the table.

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