Freelancer and Gig Worker Retirement - Self-Directed Tax-Free Savings
Freelancers and gig workers operate without employer benefits, facing both the employee and employer portions of self-employment tax (15.3% on the first $160,200 of net earnings in 2024). Income is variable and retirement savings entirely self-directed.
Retirement Landscape for Freelancer / Gig Worker
Freelancers and gig workers operate without employer benefits, facing both the employee and employer portions of self-employment tax (15.3% on the first $160,200 of net earnings in 2024). Income is variable and retirement savings entirely self-directed.
Key Numbers: 57 million Americans do some freelance work. Median freelancer income: $45,000-$75,000 depending on field. Self-employment tax adds 14.13% effective rate on net earnings after SE deduction.
Common Retirement Challenges
Challenges that Freelancer / Gig Worker typically face
How IUL Solves These Problems
IUL is particularly well-suited for gig workers because it has no minimum contribution requirements (beyond policy premiums) and flexible funding. IUL also builds cash value that can serve as an emergency fund and retirement vehicle simultaneously, addressing both the income volatility and retirement savings gaps of gig work.
The Key Advantage: IUL policy loans are not considered taxable income at the state or federal level. This means no IRMAA triggers, no Social Security taxation thresholds crossed, and no impact on means-tested benefits.
Key Strategies for Freelancer / Gig Worker
Get a Retirement Plan Designed for Freelancer / Gig Worker
Work with an independent IUL advisor who understands the specific retirement challenges and opportunities for your situation.
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