Summary：Uber and DoorDash Drivers Think They Have No 401(k). The IRS Lets Them Build a $72,000 One but Almos

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Uber and DoorDash Drivers Think They Have No 401(k). The IRS Lets Them Build a $72,000 One but Almost Nobody Does

**Introduction**
Many gig‑economy workers assume that because they are classified as independent contractors, they lack access to employer‑sponsored retirement plans. A recent survey by the Financial Health Network found that over 60 % of Uber, DoorDash and Instacart drivers believe they cannot contribute to a 401(k). In reality, the Internal Revenue Service permits these self‑employed individuals to establish a Solo 401(k) that allows contributions of up to $72,000 for 2024—far more than the standard employee limit. Yet uptake remains strikingly low, leaving a sizable retirement‑savings gap in the rapidly growing platform workforce.

**Key Developments**
The IRS updated contribution limits for Solo 401(k) plans in 2024, raising the elective deferral cap to $23,000 and allowing an additional profit‑sharing contribution of up to 25 % of net self‑employment income, with a combined ceiling of $72,000 (or $79,500 for those aged 50 and older). Despite the clear tax advantage—contributions reduce taxable income and grow tax‑deferred—only an estimated 8 % of gig workers have opened such accounts, according to a 2023 study by the Brookings Institution. Barriers cited include lack of awareness, perceived administrative complexity, and irregular income streams that make regular contributions feel daunting.

**Industry Analysis**
Industry experts point to a mismatch between the flexibility gig platforms promote and the rigidity workers associate with traditional retirement savings. “Drivers are accustomed to cash‑out models—earning per ride or delivery—and view retirement planning as a long‑term, fixed‑commitment product,” says Maya Patel, a labor‑economics researcher at Georgetown University. Platforms have begun experimenting with opt‑in retirement features; Uber’s 2022 pilot offered a portable IRA option, but participation remained under