Best Retirement Accounts 2026: Solo 401(k), SEP, SIMPLE, IRA and HSA for Store Owners

When you work for yourself, nobody hands you a retirement plan. There is no HR department picking a 401(k) provider, no payroll deduction and no match. You choose the account type, open it, fund it and keep the paperwork straight, and the account type matters far more than the logo on the app. In 2026 the IRS limit for an IRA is $7,500, while a solo 401(k) can take up to $72,000 in total contributions, so the gap between the two is not small.

I wrote this for store owners at Ecommerce Paradise, where my work is helping people build high-ticket stores. As my guide on what high-ticket dropshipping is explains, the model can throw off real profit, and once it does, you need somewhere tax-advantaged to put some of it. This guide covers the accounts a self-employed owner can actually use, the 2026 limits, and which brokerages host which account.

Everything below is as of October 2026. It comes from IRS pages, the IRS 2026 limit announcements, FINRA, SIPC, NerdWallet, and each brokerage’s own plan pages where I could read them. I have not opened these accounts or tested the platforms myself for this piece, so treat it as a research summary and confirm the figures that decide your choice on the signup page.

Disclosure: I may earn a commission if you sign up through my Schwab link, at no extra cost to you. It does not change what the sources say, and I will point out where Fidelity, Vanguard or another firm comes out ahead.

This is general information, not personalized financial, tax or legal advice, and I am not a licensed financial advisor. I will not tell you to buy or sell any specific stock, fund or coin, and nothing here says which account is right for your taxes. I will lay out account types, limits and tradeoffs so you can ask a CPA better questions.

The Short Answer: Which Account Fits Which Store Owner

If you run the store alone, have no employees other than a spouse and can save a meaningful amount, the solo 401(k) has the highest ceiling. It lets you contribute as both the employee and the employer, and the IRS says you wear two hats in the plan. Schwab, Fidelity and E*TRADE all list a version with a Roth option.

If you want the least paperwork, a SEP-IRA is the simpler pick. The IRS says only the employer contributes, there is generally no filing requirement and you can set it up as late as the due date of your tax return, including extensions. The catch is that if you hire staff, you generally have to contribute the same percentage for them.

If your profit is still small or inconsistent, an IRA is the easy starting point at $7,500 for 2026 ($8,600 at age 50 or older). If you have a qualifying high-deductible health plan, an HSA is a separate bucket with its own limits. A SIMPLE IRA is built for businesses with employees, so for an owner-only store it is usually the last one I would reach for.

How I Picked These Accounts (and What I Did Not Do)

I started with the IRS, because the account rules and limits belong to the IRS and not to the brokerages. I used its 2026 cost-of-living announcement, its plan pages for one-participant 401(k)s, SEPs and SIMPLE IRAs, and its HSA revenue procedure. I then read each brokerage’s own plan pages to see which accounts it actually hosts, and used NerdWallet and FINRA for plain-English context.

I did not rank brokerages by sign-up bonuses, because they change and I cannot verify what you will see today. I also did not run the numbers on anyone’s actual tax return. Where two sources disagree, I say so, and I list the stale pages I found so you know which figure to trust.

The Account Types at a Glance: 2026 IRS Limits

The limits below come from the IRS cost-of-living adjustment table. The IRS 2026 retirement limits announcement backs up the same numbers. The HSA figures come from IRS Revenue Procedure 2025-19. Limits are adjusted most years, so confirm them on IRS.gov for the year you contribute.

The $1,000 HSA catch-up comes from IRS Publication 969 and is not indexed. The Publication 969 page on IRS.gov is the 2025 edition and its main text uses the $4,300 and $8,550 figures for 2025, with a tip box giving the 2026 amounts of $4,400 and $8,750 that match the revenue procedure.

Solo 401(k): The Highest Ceiling for an Owner With No Employees

The IRS says a one-participant 401(k) is not a new kind of plan. It is a traditional 401(k) covering a business owner with no employees, or that person and a spouse, and it follows the same rules as any other 401(k). The owner can contribute elective deferrals up to the annual limit, plus an employer contribution, as laid out on the IRS one-participant 401(k) page.

For 2026 the deferral limit is $24,500 and the overall cap is $72,000, not counting catch-up. Catch-up is $8,000 at 50 or older, and $11,250 for ages 60 to 63. The IRS also says the limit on deferrals is per person, not per plan, so a day job with a 401(k) uses the same $24,500 allowance.

How the Self-Employed Math Works

The IRS says self-employed owners must use a special computation, because your compensation is your earned income, meaning net earnings from self-employment after deducting half your self-employment tax and your own plan contributions. It points to the worksheets in IRS Publication 560. Schwab’s plan page describes the employer share as up to 25% of compensation or 20% of net self-employment income, which lines up with that special computation.

In plain terms, the 25% headline does not apply to your raw profit. I work through a rough example in the math section below, clearly labeled as my own arithmetic.

Paperwork, Deadlines and Limits on the Plan

The IRS says an owner with no employees does not need nondiscrimination testing. That advantage disappears if you hire employees who meet the plan’s eligibility rules, because you must include them. The IRS also says a one-participant plan generally has to file Form 5500-EZ once it has $250,000 or more in assets at the end of the year.

Schwab’s own page adds timing details. It says a business owner can establish the plan and make retroactive employer contributions until the tax filing deadline plus extensions, and that unincorporated owners generally have until the filing deadline, excluding extensions, to make retroactive deferrals. It also says incorporated owners must make deferrals in the same tax year, so check your entity type before you count on the later date.

SEP-IRA: Fewer Forms, Employer Contributions Only

The IRS describes a SEP as a plan that lets an employer, including a self-employed person, contribute to traditional IRAs set up for each eligible employee. A SEP-IRA allows contributions of up to 25% of each employee’s pay, it has no annual filing requirement for the employer, and only the employer contributes. The IRS SEP page is the place to read the eligibility and contribution rules.

The 2026 cap is the lesser of 25% of pay or $72,000, on compensation of up to $360,000. For a self-employed owner NerdWallet’s guide to self-employed plans says net self-employment income means net profit minus half your self-employment tax and your SEP contribution, so the effective rate on your own profit is lower than 25%.

Flexibility is the real draw. NerdWallet says you do not have to contribute every year, and Schwab says an employer can change the percentage each year or skip years. The tradeoff is that you cannot use a SEP to save only for yourself once you have eligible employees, and NerdWallet adds that there is no catch-up contribution.

The Roth SEP Question

The IRS SEP page says you may choose to accept Roth contributions but are not required to. Vanguard’s page says SECURE 2.0 allows Roth SEP contributions and that Vanguard will not offer the option at this time. NerdWallet, meanwhile, describes Roth contributions to a SEP as an option. Ask the brokerage you plan to use before assuming it exists.

SIMPLE IRA: Built for Employers, Not Owner-Only Stores

The IRS says a SIMPLE IRA is ideally suited as a start-up plan for small employers that do not already have one, available to businesses with generally 100 or fewer employees. The employer has to make either a matching contribution up to 3% of compensation or a 2% nonelective contribution, per the IRS SIMPLE IRA page.

For 2026 the employee limit is $17,000, or $18,100 under a SECURE 2.0 rule for certain plans. That is far below the solo 401(k) or SEP ceilings, which is why NerdWallet lists it as best for larger businesses with up to 100 employees. The IRS also says early withdrawals within the first two years of participation can face a 25% additional tax instead of 10%.

The IRS sources do not fully agree on Roth treatment. The IRS SIMPLE IRA plan page, reviewed in April 2026, still says a SIMPLE IRA cannot be a Roth IRA, while IRS Publication 590-A says a SIMPLE IRA can be traditional or Roth under SECURE 2.0. Schwab says that starting with the 2026 plan year, employees can make Roth salary deferrals, and that employer contributions stay pre-tax. If a Roth SIMPLE matters to you, confirm that the provider supports it and ask a tax professional.

Traditional and Roth IRAs: The Starting Point at $7,500

The IRS says the 2026 IRA limit rose to $7,500 from $7,000, with a catch-up of $1,100 for people 50 and older, and the limit applies to all your traditional and Roth IRAs combined. The IRS IRA contribution limits page also says you can contribute even if you take part in another plan through your business, though your deduction may be limited.

A traditional IRA contribution may be deductible, with the deduction phasing out if you or your spouse is covered by a plan at work. For 2026 the IRS lists a range of $81,000 to $91,000 for a single filer who is covered, and $129,000 to $149,000 for married couples filing jointly when the contributor is covered. The IRS also says that if neither you nor your spouse is covered at work, those phase-outs do not apply.

A Roth IRA contribution is not deductible, but qualified withdrawals can be tax free. Roth contributions phase out at $153,000 to $168,000 for single filers and $242,000 to $252,000 for joint filers in 2026. If your income is modest, the IRS lists 2026 Saver’s Credit limits of $40,250 for singles, $60,375 for heads of household and $80,500 for joint filers.

One practical wrinkle for store owners is that contributing to a SEP or solo 401(k) can change whether your traditional IRA deduction is limited. IRS Publication 590-A says you are generally covered by a defined contribution plan for a year if amounts are contributed or allocated to your account for that plan year, so a funded plan can trigger the phase-outs above. A CPA can answer it for your situation. For a deeper look at IRA providers, see my guide to the best IRA accounts.

HSA: The Account That Is Not Called a Retirement Account

An HSA is a health account, but it belongs in a retirement conversation because the money stays with you. IRS Publication 969 says you can deduct contributions even if you do not itemize, earnings are tax free and distributions may be tax free for qualified medical expenses. To contribute, you generally must be covered by a high-deductible health plan, have no other disqualifying coverage and not be enrolled in Medicare.

For 2026 the HSA limit is $4,400 for self-only coverage and $8,750 for family coverage, and a qualifying plan must have a deductible of at least $1,700 self-only or $3,400 family. Non-medical withdrawals face income tax plus an additional 20% tax, except after you are disabled, reach 65 or die. That makes it flexible but not a free-for-all.

Fidelity’s HSA page lists $0 account fees and a $0 minimum, says individuals can open one even if their employer does not offer it, and says you can invest in stocks, ETFs and mutual funds. Schwab’s page says it does not offer its own HSA custodian, and its Health Savings Brokerage Account only works inside an existing HSA with a provider that offers a brokerage option. I could not confirm an HSA from Vanguard, E*TRADE or Robinhood on the pages I read.

Which Brokerage Hosts Which Account

The table near the top gives the short version. These are the details behind it, and they come from each firm’s own pages as I read them in October 2026, so confirm them before you open anything.

Charles Schwab

Schwab lists an Individual 401(k) in traditional and Roth versions, a SEP IRA and a SIMPLE IRA, each with a $0 minimum deposit and no fee to open or maintain, though other account fees, fund expenses and commissions may apply. Its Individual 401(k) page also lists 24/7 service. Employer profit-sharing contributions to the solo plan can be designated Roth, per the same page.

The downsides are specific. Schwab says its Individual 401(k) does not permit participant loans, in-plan Roth conversions or nondeductible employee deferrals. It also has no HSA of its own, as covered above. If you want all your self-employed plan options in one place with a human on the phone, you can look at Schwab’s self-employed plan lineup and read the fee terms before you commit.

Fidelity

Fidelity’s self-employed 401(k) page lists no opening cost and no account fees, and says it is for sole proprietors and small businesses with no eligible employees other than owners and spouses. It offers a Roth option, but says it does not offer loans, hardship withdrawals, in-plan conversions to Roth or employer contributions as Roth. Its plan comparison page lists SEP and SIMPLE IRAs with no account fees or minimums.

Fidelity is the stronger fit if an HSA is on your list, since it hosts one directly. My Schwab vs Fidelity comparison covers how the two compare on fees, cash rates and banking.

Vanguard

Vanguard’s small-business page lists a SEP-IRA for anyone who is self-employed and does not employ others, with no fee to establish an account, up to 25% of compensation or $72,000 for 2026, and a $360,000 compensation limit. For self-employed individuals it says the effective figure is 20% of net income. It says it will not offer Roth SEP contributions at this time.

When I opened the page at Vanguard’s solo 401(k) address, it described only the SEP-IRA. MyMoneyBlog reported in April 2024 that Ascensus took over Vanguard’s individual 401(k), multiple-participant SEP and SIMPLE IRA business, so I did not find a Vanguard-run solo 401(k) for new accounts. Confirm with Vanguard if that matters to you, and look at the other firms if a solo 401(k) is on your list. My Schwab vs Vanguard guide goes deeper on fees and who each fits.

E*TRADE and Robinhood

E*TRADE’s Individual 401(k) page says it is available to self-employed individuals with no employees other than a spouse, lets you choose traditional, Roth or both, and says loans are available. It lists $0 commissions on stocks, ETFs and mutual funds but did not state account fees or minimums on the page I read, and its contribution limits were the 2025 figures. Its SEP IRA and SIMPLE IRA pages also exist and also showed 2025 limits, so check the current numbers before you rely on any of them.

Robinhood’s IRA overview page says it offers two IRA types, traditional and Roth, and I found no mention of a SEP, solo 401(k) or SIMPLE there. That makes it an IRA-only choice for self-employed owners. I covered the IRA side of these firms in my IRA guide linked above.

Rough Math: What a Store Owner Could Put Away (My Own Arithmetic)

Here is a simplified example for a sole proprietor on Schedule C with no employees. I use the IRS self-employment tax rate of 15.3% on 92.35% of profit, a Social Security wage base of $184,500 from the IRS 2026 table, and the 20% effective rate that Schwab and Vanguard describe for self-employed owners. This is my own arithmetic, not tax advice, and it ignores state tax, the QBI deduction and every other wrinkle.

These are ceilings, not suggestions. Saving $31,935 out of $40,000 of profit would leave almost nothing for taxes and living costs, so most owners at that level would land well below the maximum. The point of the table is how differently the formulas scale: at $100,000 of profit the solo 401(k) ceiling is more than double the SEP and more than five times what an IRA allows.

The IRS says to use the rate table or worksheets in Publication 560 for the real calculation, and your software or CPA will do the final math. IRS Publication 560 says sole proprietors and partners deduct contributions for themselves on Schedule 1 of Form 1040 rather than as a Schedule C expense, and that contributions made to a SEP for yourself are not a business expense, though contributions for common-law employees are. Your preparer can confirm where each line goes. For the full list of what does go on Schedule C, see my guide on how to deduct ecommerce business expenses.

What Changes If You Hire People or Run an S Corporation

Hiring changes the plan options quickly. The IRS says a solo 401(k) is for an owner with no employees other than a spouse, and once eligible employees exist you must include them and the testing advantage goes away. A SEP requires the same percentage of pay for every eligible employee, including you, and NerdWallet notes that can get costly beyond a few staff.

Entity type also matters. The IRS special computation I described is written for self-employed individuals, and if your store is an S corporation and you pay yourself W-2 wages, the 25% employer share is generally figured on those wages instead of on net profit. I am not a tax professional, so ask a CPA how your structure affects the numbers. My business formation guide covers entity choice, which affects how plan contributions are figured.

Safety, Withdrawals and the Rules That Bite Later

SIPC protects against the loss of cash and securities at a failed member brokerage firm, up to $500,000 including $250,000 for cash, but not against a decline in the value of your investments. That is a custody protection, not a performance guarantee, and the SIPC explainer spells out what is and is not covered. Ask each firm how it applies to the account type you choose.

Early withdrawals are the other big trap. For SEP and traditional IRAs the IRS says withdrawals before age 59 and a half generally carry an additional 10% tax, with exceptions listed on its site. The FINRA overview of retirement accounts says required minimum distributions from traditional retirement plans generally start at age 73, changing to age 75 in 2033, and that they do not apply to Roth account owners during their lifetime. Under SECURE 2.0 as written in the tax code, age 73 applies if you turn 73 before 2033 and age 75 applies if you turn 74 after 2032, so the later age generally means people born in 1960 or later. IRS pages still describe age 73.

Where Retirement Accounts Fit in a Store Owner’s Money Plan

The order of operations matters more than the provider. Your store needs working capital first, which means supplier invoices, ad spend and a buffer for refunds and slow months. My supplier guide explains how dealer terms and payment timing affect your cash, so do not lock that money into an account with a 10% early withdrawal tax.

A business bank account that keeps your money organized matters just as much, and my guide to the best business bank accounts for ecommerce entrepreneurs covers that. If you are still deciding what to sell, the high-ticket niches list is a better use of an afternoon than shopping for a plan.

If you want to talk through the business side, 1-on-1 coaching is where we can look at your store, though I will not give personal investment advice. When you are ready for tax prep, my roundup of tax software for self-employed filers covers which products support the self-employed retirement contribution deduction.

Where the Sources Are Stale or Disagree

Several IRS pages I opened still show older figures. The IRS page on retirement plans for self-employed people was marked reviewed in August 2026 but still lists 2024 limits such as $69,000 for a SEP and $23,000 for 401(k) deferrals. The SIMPLE IRA tips page for sole proprietors still lists 2024 numbers too, and the IRA deduction limits page shows charts for 2024 and 2023.

That does not make the rules wrong, only the numbers dated. The 2026 figures in this guide come from the IRS cost-of-living table and announcement, and the HSA figures come from Revenue Procedure 2025-19, because the Publication 969 page is the 2025 edition with the 2026 amounts only in a tip box. E*TRADE’s solo 401(k) page also still showed 2025 limits when I read it.

Two rule-level conflicts are worth repeating. The IRS SIMPLE plan page says a SIMPLE IRA cannot be a Roth IRA, while Publication 590-A and Schwab describe a Roth SIMPLE, and Vanguard will not offer Roth SEP contributions even though the IRS says employers may accept them. When two sources disagree, ask the provider in writing which version applies to your account.

My Verdict on the Best Retirement Accounts for 2026

For an owner-only store with real profit, my pick from the research is the solo 401(k), because its $72,000 overall cap and Roth options give the most room. Schwab is the easiest place I found to compare a solo 401(k), SEP and SIMPLE under one login, and you can open a Schwab account and read its plan documents before you fund anything. Fidelity is the better choice if you want an HSA from the same firm, and E*TRADE’s page is the only one I read that lists solo 401(k) loans.

If your profit is small or uneven, start with an IRA and move up to a SEP or solo 401(k) as the store earns more. Vanguard lists a SEP-IRA with no fee to establish it, but I did not find a Vanguard-run solo 401(k) for new accounts, and Robinhood is IRA-only for self-employed owners. Whatever you pick, confirm every limit on IRS.gov, read the fee schedule, and let a CPA check your entity type before you contribute.

Frequently Asked Questions

What is the best retirement account for a self-employed store owner?
For an owner with no employees and enough profit to save, the solo 401(k) has the highest ceiling at $72,000 overall in 2026. A SEP-IRA is the lower-paperwork alternative and an IRA is the simple starting point. You can see Schwab’s solo 401(k) terms alongside its SEP and SIMPLE options.

Can I have a solo 401(k) and an IRA at the same time?
The IRS says you can contribute to a traditional or Roth IRA even if you participate in another plan through your business, though your traditional deduction may be limited. Roth contributions also depend on your income. A tax professional can tell you how the two interact for your return.

What happens to my plan if I hire employees later?
The IRS says a one-participant 401(k) is for owners with no employees other than a spouse, and that the no-testing advantage ends once you hire eligible employees. A SEP requires the same percentage of pay for every eligible employee. Talk to a CPA before you hire so the plan does not become a surprise cost.

Do I have to file anything for my own plan?
The IRS says a one-participant 401(k) generally must file Form 5500-EZ once it has $250,000 or more in assets at year end, and a SEP generally has no employer filing requirement. Schwab says it needs Form 5500 when plan assets reach $250,000 or when the plan is terminated. Confirm the current rules before you file.

Is my retirement account protected if the brokerage fails?
SIPC protects up to $500,000 including $250,000 of cash if a member firm fails, but it does not cover market declines. Ask your provider how the protection applies to the specific account type you choose, and check that the firm is a SIPC member before you transfer money.

Related Articles

If you found this useful, these guides go deeper on related topics:

• Best IRA Accounts 2026: Schwab, Robinhood, Fidelity and 5 More Compared
• Schwab vs Fidelity 2026: Fees, Cash Rates, Banking and Who Each Fits Best
• Schwab vs Vanguard (2026): Fees, Cash Yields, LLC Accounts and Who Fits Best
• How to Deduct Ecommerce Business Expenses
• Business Formation for Dropshipping: LLC, EIN, Licenses and Banking (2026 Guide)

Trevor Fenner

Trevor Fenner is an ecommerce entrepreneur and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.

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