3. Set Your 2026 Contribution Strategy and Automate It
The end of the year isn't just about wrapping up 2025, it's the perfect time to plan ahead. Self-employed workers can often face inconsistent income, making it easy to skip contributions when cash flow gets tight. That's where automation comes in.
Here's why setting up automatic contributions for 2026 makes sense:
- Consistency helps build wealth: Regular contributions, even small ones, can add up over time. Automating ensures you're consistently funding your retirement, even during busy months when it's easy to forget.
- Remove decision fatigue: When you automate, you don't have to decide each month whether to contribute. It's already done, keeping your retirement savings on track without the mental load.
- Adjust as you go: Set a baseline contribution amount that works for your typical cash flow. If you have a strong quarter, you can always make additional contributions on top of your automated plan.
When you automate your retirement contributions, you’re helping your savings stay steady throughout the year, without the extra effort. Set it up now and keep 2026 moving in the right direction.
Contribute to a SEP IRA and Get a 1% Match
As a self-employed worker, your retirement is entirely in your hands. There’s no company plan doing the work for you but that freedom gives you the chance to tailor your savings, contribute as much as you want, and watch your nest egg grow on your terms.
PensionBee offers a SEP IRA designed specifically for self-employed individuals and is offering a 1% match on every contribution. You can check out what that means for your savings future goals by using our 1% match calculator.
You can also rollover your old 401(k)s and IRAs into a PensionBee IRA and when you do, you also receive a 1% match. Many rollovers happen automatically, but if yours needs extra attention, our personal rollover managers, called BeeKeepers, are ready to guide you every step of the way. Your investments are in diversified portfolios with ETFs powered by State Street Investment Management, one of the world’s largest asset managers.
Frequently Asked Questions (FAQs)
1. What is a SEP IRA, and why is it good for self-employed workers?
A SEP IRA (Simplified Employee Pension) is a retirement account designed for self-employed individuals and small business owners. Contributions are tax-deductible, your savings grow tax-deferred, and annual limits are much higher than a Traditional or Roth IRA, making it a powerful way to boost retirement savings.
2. How much can I contribute to a SEP IRA in 2025?
You can contribute up to 25% of your income, with a maximum of $70,000 in 2025 and $72,000 in 2026.
3. Can I roll over old 401(k)s or IRAs into an IRA?
Yes! Rolling over old 401(k)s into a single IRA can help simplify retirement planning, potentially lower fees, and can help make it easier to stay on track toward your long-term retirement goals.
4. Do I have to contribute the same amount every year?
No. SEP IRAs are flexible, you can adjust your contributions based on your business earnings each year, which is especially helpful if your income varies.
5. Can contributing to a SEP IRA reduce my taxable income?
Yes. Contributions to a SEP IRA are tax-deductible, which can help lower your taxable income for the year and reduce your overall tax bill.
6. What if I’m self-employed but have inconsistent income?
SEP IRA contributions are based on your net earnings, so you can contribute less in a slower year and more in a stronger year, giving you flexibility without overextending your cash flow.
7. Is it too late to make a SEP IRA contribution for 2025?
You can make SEP IRA contributions for 2025 up until your tax filing deadline in April 2026, but making contributions before December 31 can help maximize your savings growth and plan your year-end taxes.
