Many workers struggle to save for retirement without a 401(k) or steady income. IRA limits may not be enough, but the solo 401(k) offers a solution, allowing contributions up to $70,000 in 2025. Only six in 10 Americans have retirement savings, making this option crucial for those with side incomes or self-employment.

Millions of Americans qualify for a solo 401(k) but overlook it. Side hustles are common, yet many miss the opportunity to save for the future. Contributions can reach $70,000 in 2025, offering tax advantages and long-term growth potential, especially for freelancers and small business owners.

Opening a solo 401(k) is straightforward through major brokerages like Fidelity. Contributions can be deducted from taxable income, and even those maxing out a workplace 401(k) can use a solo 401(k) for additional savings. This retirement vehicle can provide significant benefits for those willing to plan for the future.

Side gig income can be significant for retirement, but many overlook it. Saving even a portion in a solo 401(k) can lead to substantial growth over time. While these accounts come with rules and paperwork, the tax advantages and long-term benefits can make them a valuable tool for retirement planning.

Read more at Yahoo Finance: Workers making money from side gigs may be missing out on a powerful savings tool. What to know about the solo 401(k)