Retirement Savings for Photographers: Planning for Your Future

As photographers, we often get caught up in the day-to-day hustle of managing our businesses, booking clients, and delivering projects. However, taking a step back and thinking about long-term financial security is essential, especially when it comes to planning for retirement.

In this blog post, we’re going to cover various retirement savings accounts that are particularly relevant to photographers, along with a few other ways you can start thinking about saving for your future.

Disclaimer: Keep in mind, this post isn’t financial advice, and we recommend consulting with a licensed financial professional for advice tailored to your specific situation.

Retirement saving is a big topic we cover in our Financial Management Course for Photographers, too! In there, you can learn everything you need to about budgeting and cost of doing business, pricing your services, maximizing tax savings, and putting your profit to good use to create the life you want to live!

Why Retirement Savings Matter for Photographers

Does your back hurt just thinking about retirement as a photographer?

My back hurts just from being in my 30’s and shooting primarily on a Canon 70-200mm lens at weddings, but retirement is something that’s given me some headaches in the past.

As a photographer and business owner, the freedom of running your own business can come with risks—such as inconsistent income or lack of employer benefits like retirement plans.

However, one of the benefits of being self-employed is having unique opportunities to set up accounts that can help you save not only for retirement, but also for other major life milestones. These accounts often offer tax advantages, making it easier to reach your financial goals.

Photographers are particularly prone to focusing on the short-term, thinking about how much money they’ll make this month or this year.

But taking on a mindset of financial abundance means looking ahead—how can the money you’re generating today contribute to meeting your long-term goals?

Whether it’s planning for retirement, building an emergency fund, or saving for a home, there are plenty of strategies you can employ to save smarter.

Retirement Savings Accounts for Photographers

Traditional IRA

One of the most common retirement savings accounts is the Traditional IRA.

As a self-employed photographer, this is a powerful tool to start setting aside money for your future.

Contributions made to a Traditional IRA are often tax-deductible, which means you can lower your taxable income now and potentially pay fewer taxes in retirement when you start taking distributions. The downside is that withdrawals made in retirement are taxed as ordinary income.

• Best For: Photographers looking for a straightforward retirement account with tax-deductible contributions.
• Contribution Limit: $6,500 per year (as of 2024), with an additional $1,000 catch-up contribution for those aged 50 and older.

SEP IRA

A SEP IRA (Simplified Employee Pension) is another retirement savings option, specifically designed for self-employed individuals and small business owners.

This account allows you to contribute a percentage of your income, making it a great choice if you have a higher income and want to contribute more than the limits of a Traditional IRA. Like the Traditional IRA, contributions are tax-deductible, and distributions are taxed in retirement.

• Best For: Photographers with fluctuating income who want to save more during high-earning years.
• Contribution Limit: Up to 25% of your net earnings from self-employment, with a cap of $66,000 (as of 2024).

Roth IRA

The Roth IRA is a favorite for many self-employed individuals because it offers tax-free growth.

For that reason, it’s a favorite of mine as well as many accountants and financial planners.

You contribute to a Roth IRA with after-tax dollars, meaning you don’t get a tax deduction now, but all future withdrawals—including earnings—are tax-free. Another benefit of the Roth IRA is that you can withdraw your contributions (not earnings) at any time without penalties, making it a flexible option.

• Best For: Photographers who expect to be in a higher tax bracket in retirement or want tax-free income in the future.
• Contribution Limit: $6,500 per year (with a $1,000 catch-up for those over 50), subject to income limits.

Solo 401(k)

A Solo 401(k) is ideal for photographers who have no employees (except possibly a spouse).

This account allows you to make higher contributions than an IRA, with both employee and employer contributions.

As the owner of your business, you can contribute up to $22,500 as the “employee” (or $30,000 if you’re over 50) plus up to 25% of your net earnings as the “employer,” up to a total of $66,000 for 2024.

• Best For: High-earning photographers who want to maximize retirement contributions.
• Contribution Limit: $66,000 per year in total contributions.

Additional Savings Strategies for Photographers

Aside from retirement accounts, there are other financial strategies to help you save for major life goals while growing your wealth over time. I take the view that these are all just more tools in your toolbelt for optimizing your financial situation!

High-Yield Savings Accounts

If you’re not ready to dive into investing, consider using a high-yield savings account to grow your emergency fund or save for short-term goals like buying a home or taking a big trip. With interest rates currently around 4-5%, you can earn more on your savings while keeping your money easily accessible.

Taxable Brokerage Accounts

Once you’ve maxed out your retirement accounts, a taxable brokerage account can be a useful tool for long-term investing. Whether you choose to invest in stocks, bonds, or index funds, the key is to focus on a diversified portfolio that aligns with your risk tolerance. This type of account doesn’t offer the tax benefits of a retirement account, but it provides flexibility and the potential for growth over time.

Health Savings Accounts (HSA)

If you’re enrolled in a high-deductible health plan, a Health Savings Account (HSA) is an excellent way to save for medical expenses while also benefiting from tax savings. HSAs are tax-deductible, and the funds can grow tax-free when invested. Plus, withdrawals for qualified medical expenses are tax-free.

• Best For: Photographers who want to save for healthcare costs and grow their savings tax-free.
• Contribution Limit: $4,150 for individuals or $8,300 for families (as of 2024).

Flexible Spending Accounts (FSA)

A Flexible Spending Account (FSA) is another option for saving on healthcare costs, though it doesn’t offer the same flexibility as an HSA. The downside of an FSA is that the money you contribute must be used within the plan year, or it will be forfeited.

• Best For: Photographers who anticipate specific medical expenses in the coming year.

Where to Set Up Your Retirement Accounts

When you’re ready to take the next step and open a retirement or investment account, choosing the right financial institution is key. Below are some of the most popular and reputable financial institutions where photographers can easily set up accounts like Traditional IRAs, Roth IRAs, SEP IRAs, Solo 401(k)s, and more.

Fidelity

Fidelity is one of the largest and most well-established financial institutions in the world. It offers a wide variety of account options for self-employed individuals, including IRAs, Solo 401(k)s, and taxable brokerage accounts. Fidelity also has a reputation for excellent customer service, low fees, and a user-friendly platform, making it a great choice for both new and seasoned investors.

• Best For: Photographers looking for a comprehensive platform with low-cost investment options and easy account management.
• Account Options: Traditional IRA, Roth IRA, SEP IRA, Solo 401(k), Taxable Brokerage Account.

Learn More about Fidelity

Vanguard

Vanguard is known for its low-cost index funds and strong focus on long-term investing. As a pioneer in low-fee investing, it’s an excellent option for photographers who want to keep more of their money growing over time. Vanguard offers a full range of retirement accounts, including IRAs and SEP IRAs, and it’s particularly well-suited for those interested in index fund investing.

• Best For: Photographers who prefer low-cost, long-term investing with a focus on index funds.
• Account Options: Traditional IRA, Roth IRA, SEP IRA, Solo 401(k), Taxable Brokerage Account.

Learn More about Vanguard

Charles Schwab

Charles Schwab is another highly trusted institution, offering a range of retirement and investment accounts with competitive fees and a wide selection of investment options. It’s known for having a strong educational platform, making it a great option if you want to learn more about investing while managing your own portfolio. Schwab also offers great flexibility for those who want a hands-on approach to their investments.

• Best For: Photographers seeking a balance between a hands-on investing approach and educational resources.
• Account Options: Traditional IRA, Roth IRA, SEP IRA, Solo 401(k), Taxable Brokerage Account.

Learn More about Charles Schwab

How to Choose the Right Institution for Your Needs

When selecting a financial institution, consider the following things:

• Fees: Look for institutions that offer low-cost options, especially if you plan to contribute regularly over the long term.
• Investment Options: Make sure the institution offers a wide range of investment options, including low-cost index funds and ETFs.
• Customer Service: If you’re new to investing, choose a platform with strong customer service and educational resources.
• Ease of Use: Some platforms are more user-friendly than others, so think about whether you prefer a hands-on or automated approach.

No matter which institution you choose, the key is to start saving and investing for your future. Each of these platforms offers a variety of retirement and investment accounts tailored to meet the needs of self-employed photographers. As always, consider consulting with a financial advisor to determine which options best align with your financial goals and circumstances.

Moving Money from a Job’s Retirement Account to Your Self Employed Account

If you are a photographer who still works a job somewhere else (typically as a W2 employee), but are considering a shift to becoming a full time photographer…a common question that will come up for you is…what do I do with the retirements I have with my current employer?

Let’s break down what things could look like – my wife and I have gone through this process ourselves, leaving old corporate jobs behind for our photography pursuits.

When you leave an employer and need to move your 401(k) (or a similar workplace retirement plan) into an account you control, the first step is to reach out to your plan administrator or HR department.

You’ll request a “rollover distribution” form—most plans offer an online portal where you can initiate this.

At this point you’ll choose between a direct rollover, where the plan sends your funds straight to your new account, or an indirect rollover, where the plan issues you a check that you then have 60 days to deposit into your new account.

A direct rollover is almost always recommended: it avoids mandatory tax withholding and eliminates the risk of missing the 60‑day deadline and incurring penalties.

Common destinations for rolled‑over funds include:

We covered these in more detail earlier in this post, but just to reiterate!

• Traditional IRA (Individual Retirement Account): This is by far the most common choice. It preserves the tax‑deferred status of your money and offers a wide selection of low‑cost mutual funds, ETFs, and individual securities.
• Roth IRA: If you’re willing to pay income tax now in exchange for tax‑free growth and withdrawals later, you can roll a traditional 401(k) into a Roth IRA. Be prepared to cover the tax bill on any pre‑tax contributions and earnings at your current rate.
• Solo 401(k) or SEP IRA: As a self‑employed photographer, you may be eligible to open a one‑person 401(k) or a Simplified Employee Pension (SEP) IRA. Both allow higher annual contribution limits than a Traditional IRA and retain the tax‑deferred status of your 401(k) funds.

It’s worth mentioning that most plans will actually allow you to roll money into different types of accounts – for example, you could split your retirement savings into a Traditional IRA and Roth IRA!

Timing considerations are also important to ensure a smooth transfer and to align with your cash‑flow and tax planning. A few things to consider:

• Avoid rolling over at calendar‑year‑end if you anticipate changes in your income tax bracket—doing it early in the year gives you more time to plan for any tax impact (especially if you’re converting to a Roth).
• Initiate your rollover promptly after your last paycheck posts; keeping retirement assets in transitional limbo can expose you to market swings and cloud your year‑end statements.
• If you choose an indirect rollover, remember the 60‑day rule: failing to redeposit the funds within that window turns your distribution into a taxable withdrawal and may trigger a 10% early‑withdrawal penalty if you’re under age 59½.

Finally, watch for fees and taxes:

• Avoid surprise withholding: With indirect rollovers, your plan will typically withhold 20% for federal taxes. To fully preserve your balance, you’d need to replace that withheld portion out of pocket when you complete the rollover.
• Early‑withdrawal penalties: Only direct rollovers are exempt from the 10% penalty if you’re under 59½. Any distributed funds you miss rolling over after 60 days count as an early withdrawal.
• Account fees: Check the expense ratios and administrative fees on your new account. Many IRAs and Solo 401(k)s have minimal to zero maintenance costs, but some custodians charge annual or per‑transaction fees.
• State taxes: If you live in a state with income tax, factor in any state withholding rules on rollovers and conversions.

By choosing a direct rollover into a cost‑effective, self‑directed retirement vehicle—like a Traditional or Roth IRA, or a Solo 401(k)—and timing the transfer to suit your tax situation, you can avoid unnecessary taxes, penalties, and fees, and keep all your retirement savings working toward your goals as you build your photography business.

Conclusion

Retirement and long-term savings are often afterthoughts for busy photographers focused on growing their businesses. But with the right accounts and strategies, you can set yourself up for a comfortable and financially secure future.

Whether you’re just starting your photography business or you’ve been at it for years, now is the time to think about your long-term goals and how your money can work for you. Consider consulting with a financial advisor to get personalized advice, and take the first steps toward securing your financial future today.

Like the idea of having a photography business that can support your ability to retire comfortably? Our Financial Management Course for Photographers can help you make that a reality.

Christian Romans

Chris is a business strategist at Shoot and Thrive and co‑owner of Hand and Arrow Photography alongside his wife. With over a decade of professional shooting experience (and a passion for photography since high school), he helps creatives grow through smart websites & SEO, blogging, branding, and sales strategies. When he’s not behind the lens or refining a marketing funnel, you’ll find him playing guitar, skateboarding, or planning his next adventure—his favorite so far was campervanning around Iceland. Chris holds degrees in Psychology and Philosophy, which inform his human‑centered approach to both art and business.

www.shootandthrive.com