How a Solo 401k Cuts Taxes for Freelancers

Lucas and Luna break down the Solo 401k — a retirement account that lets self-employed individuals contribute up to $69,000 in 2026 as both employer and employee. They walk through the mechanics: the 25% employer profit-sharing contribution on top of the $23,500 employee deferral, the catch-up provisions for those over 50, and the key difference from a SEP IRA — the ability to make Roth contributions. Using a concrete example of a freelance designer earning $150,000, they show how the Solo 401k can slash taxable income by over $46,000. They also cover the Roth option for tax-free growth, the deadline for setting one up (December 31 or tax day depending on structure), and common pitfalls like the one-participant rule for spouses. Practical, actionable tax strategy for the growing gig economy. #Solo401k #FreelancerTaxes #SelfEmployed #TaxStrategy #RetirementPlanning #Roth401k #SEPIRA #GigEconomy #TaxDeduction #ProfitSharing #CatchUpContributions #IRS #Finance #SmallBusiness #FexingoBusiness #BusinessPodcast #TaxSaving #IndependentContractor Keep every episode free: buymeacoffee.com/fexingo