At 54, I have a $320,000 IRA and will soon be self-employed earning $120,000 a year. How much of that should I save for retirement?

At 54, I have a $320,000 IRA and will soon be self-employed earning $120,000 a year. How much of that should I save for retirement?

Quick Read As a W-2 employee, your employer covers half of your Social Security and Medicare taxes. As a sole proprietor or single-member LLC, you pay the entire amount 15.3% self-employment tax yourself. A Solo 401(k) is the right tool. It lets you contribute as both employee and employer. For 2026, the employee deferral limit is $24,500… Max the Solo 401(k) first, then add a Roth IRA if income allows… Are you ahead, or behind on retirement…