On the Van Wie Financial Hour radio program (Saturday mornings at 10:00 on WBOB radio, AM600 and FM101.1, and wbob.com), we frequently explain that our mission is not to tell listeners and/or callers what to do. Specific individual advice is beyond the scope of live radio (or a written Blog, for that matter). Rather, our goal is to explain to everyone what can be done, and how to do it, with or without our assistance.

Today’s topic is 401(k) Plans, but not the common and well-known accounts so many workers have available. Instead, we will discuss the Individual 401(k) Plan, or Indy(k) for short, which is only available to self-employed people. Although available for about 25 years, it is neither widely known nor well understood. For lack of information, this can result in a large quantity of money left on the table annually, due to sizeable contribution limits and annual tax breaks.

We should note that the Indy(k) is also known as a Solo(k), Personal(k), and perhaps other versions of the same Plan.

Evolving workforce demographics favor the Indy(k) Plan, as this Qualified Retirement Account is only available to our independent workforce. Contract workers (“gig workers”) are increasingly numerous, and the Indy(k) Plan is only available to self-employed business owners with no employees (except a spouse, if applicable and who works in the business).

For high-earning independent contractors, who are increasingly numerous, due largely to technology, availability of the Indy(k) can produce current tax breaks while simultaneously providing large Retirement Account balances. For 2026, employee contributions are capped at $24,500, compared to a mere $7,500 for Traditional and/or Roth IRAs (Individual Retirement Accounts). But there is more, as Indy(k) owners can also add contributions from their Company, all with current income tax deductions.

In our financial advisory business (Strivus Wealth Partners), we use Charles Schwab & Co. as our primary custodian, but all the large custodial firms offer similar plans. Paperwork is required, but is relatively straight forward. For high-earning qualified independent business owners, seeking the assistance of qualified advisors is recommended. We suggest Certified Financial Planners® (CFPs®), doing business as fee-only Registered Investment Advisors, or RIAs, and accepting fiduciary responsibility.

Most people understand that making the self-employment decision offers both opportunities and drawbacks, and we place the Indy(k) Plan solidly in the beneficial category. Prepare for your financial future. We can help.