Health, disability and retirement with no employer

General information, not tax, insurance or financial advice. Limits change yearly and plan rules vary by state and carrier. Confirm current figures with the linked sources, a licensed insurance agent and a tax professional.

Health insurance

You can buy an individual plan through the Health Insurance Marketplace (Healthcare.gov or your state's exchange) or directly from an insurer. Marketplace savings are based on your estimated net income for the coverage year, the same figure you report on Schedule C, and not on last year's income. If your income is uneven you can apply with your best estimate. Healthcare.gov notes that if you earn more than you reported you may have to repay some premium tax credit, and if you earn less you may qualify for more. Update your application when your income changes, and keep a simple record of income and expenses in case the Marketplace asks for it.

Enrollment normally happens in the yearly open enrollment window, or during a special enrollment period after a qualifying event. Whether subsidies are available at your income, and in what amount, depends on current federal law, which has been in flux; check Healthcare.gov's income calculator rather than relying on an old article.

Self-employed people can often deduct health insurance premiums for themselves, a spouse and dependents on their return, using the worksheet in the Form 1040 instructions or Form 7206. You generally cannot claim the deduction for any month you were eligible for an employer-subsidized plan, including a spouse's, even if you did not enroll.

Health savings accounts

If you are covered by a qualifying high deductible health plan, you may be able to contribute to a health savings account (HSA). Contributions are tax-advantaged and the money rolls over year to year. You generally cannot contribute while enrolled in Medicare, while covered by other disqualifying coverage, or if someone else can claim you as a dependent. Annual limits and the definition of a qualifying plan change each year, so read the current IRS Publication 969 before choosing a plan. Choosing a high-deductible plan only to unlock an HSA is a trade-off: you carry more of the first dollars of risk yourself.

Disability insurance

If you are hurt or sick and cannot work, there is no employer plan to replace income. Your options:

Individual disability income insurance. A private policy that pays a portion of income if you cannot work. Compare how it defines disability (your own occupation versus any occupation), the waiting period before benefits start, the benefit period, and what it excludes. Policies are priced by occupation class, and trades can rate as higher risk. An independent agent who sells several carriers can quote this.
Social Security Disability Insurance. SSA's definition is strict: a medical condition expected to last at least a year or result in death that keeps you from working. Benefits depend on your earnings record, so reporting your income accurately matters beyond tax.
Workers' compensation for yourself. Most states let sole proprietors exclude themselves, but some let you opt in, and a few trades or states treat owners differently. See the insurance guide and your state workers' compensation agency, since the rules differ widely.
An emergency fund. The simplest layer. Many solo operators target several months of fixed costs plus personal bills in a separate account.

Retirement: SEP-IRA or Solo 401(k)

Both are available to the self-employed, and the choice mostly turns on how much you want to save and how much paperwork you will tolerate.

SEP-IRA. Easy to open. Only the employer-side contribution is allowed. For a self-employed person the IRS limits it to a percentage of net earnings after a special calculation, with an overall dollar cap ($72,000 for 2026). You can generally make deductible contributions up to your return's due date, including extensions.

Solo 401(k) (one-participant 401(k)). For a business with no employees other than you (and a spouse). You can contribute as both employee and employer. The employee deferral limit is $24,500 for 2026, with a catch-up for those 50 and older, while total contributions are capped at $72,000 before catch-up. Employer contributions follow the same self-employed computation as a SEP. Because the employee deferral is a flat amount rather than a percentage, a Solo 401(k) can let a lower-income owner put away more than a SEP would. It has more setup and, past a plan-assets threshold, annual filing; ask the provider. The limits are per person, so deferrals at another job count against the same cap.

A third option is a traditional or Roth IRA, with its own lower limit. Roth versus traditional is a tax-timing choice worth a conversation with your preparer.

A practical order of operations

Get covered for health, even with a high deductible.
Build the emergency fund.
Price a disability policy so you know the real cost.
Pick a retirement account and automate a small contribution, then raise it when a good year arrives.