The 401(k) isn't the only way to save for retirement—and for many people, it's not even the best way. Whether your employer doesn't offer one, you've maxed out contributions, or you want more investment options, 401(k) alternatives can help you build wealth on your own terms.
In this guide, we'll explore seven alternatives to the traditional 401(k), including options most financial advisors won't tell you about—like Gold IRAs that let you hold physical precious metals in a tax-advantaged account.
Why Consider Alternatives?
1. Traditional IRA
A Traditional IRA works similarly to a 401(k)—contributions may be tax-deductible, and investments grow tax-deferred until withdrawal.
2026 Traditional IRA Details
Pros: Tax-deductible contributions, wide investment options, anyone with earned income can contribute.
Cons: Lower contribution limits than 401(k), required minimum distributions at 73, early withdrawal penalties.
2. Roth IRA
A Roth IRA is funded with after-tax dollars, but qualified withdrawals—including all growth—are 100% tax-free. Many consider it the best retirement account available.
2026 Roth IRA Details
Pros: Tax-free withdrawals, no required minimum distributions, can withdraw contributions anytime.
Cons: Income limits for contributions, no immediate tax deduction, lower limits than 401(k).
3. Gold IRA (Self-Directed Precious Metals IRA)
A Gold IRA is a self-directed IRA that holds physical gold, silver, platinum, and palladium instead of paper assets. It offers true diversification beyond stocks and bonds.
Why Consider a Gold IRA?
- Own physical gold — real coins and bars, not paper derivatives
- Crash protection — gold often rises when stocks fall
- Inflation hedge — gold maintains purchasing power over time
- Tax-free rollover — move 401(k) funds to gold without taxes
Pros: Physical asset ownership, diversification, inflation protection, same tax benefits as traditional IRAs.
Cons: Storage fees, requires specialized custodian, best as 10-20% of portfolio.
Interested in a Gold IRA?
Find out which gold IRA company is the best fit for your retirement goals.
Take the 60-Second Quiz4. Health Savings Account (HSA)
Often called the "stealth IRA," an HSA offers a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. After 65, you can withdraw for any purpose (taxed like a traditional IRA).
2026 HSA Details
Pros: Triple tax advantage, no "use it or lose it," can invest the balance, rolls over indefinitely.
Cons: Requires HDHP, limited contribution amounts, 20% penalty for non-medical withdrawals before 65.
5. Real Estate Investments
Real estate can provide income, appreciation, and tax benefits. Options include rental properties, REITs (Real Estate Investment Trusts), or real estate within a self-directed IRA.
Pros: Tangible asset, rental income, tax deductions (depreciation, mortgage interest), appreciation potential.
Cons: High capital requirements, illiquid, management responsibilities, market risk.
REITs: Real Estate Without the Hassle
6. Taxable Brokerage Account
A regular investment account has no tax advantages, but offers complete flexibility: no contribution limits, no withdrawal restrictions, no required distributions.
Pros: No contribution limits, access money anytime, favorable long-term capital gains rates, step-up in basis at death.
Cons: No tax deduction, dividends and gains are taxable annually, no creditor protection in most states.
7. SEP IRA & SIMPLE IRA
For self-employed individuals and small business owners, these accounts offer much higher contribution limits than regular IRAs.
SEP IRA
- Limit: Up to $69,000 or 25% of compensation
- Best for: Self-employed, high earners
- Note: Only employer contributions
SIMPLE IRA
- Limit: $16,000 employee + employer match
- Best for: Small businesses with employees
- Note: Both employer and employee can contribute
401(k) Alternatives Comparison
| Account | 2026 Limit | Tax Treatment | Best For |
|---|---|---|---|
| Traditional IRA | $7,000 | Tax-deductible, taxed on withdrawal | Lower taxes in retirement |
| Roth IRA | $7,000 | After-tax, tax-free withdrawal | Higher taxes in retirement |
| Gold IRA | $7,000 (or rollover) | Same as Traditional/Roth | Diversification, crash protection |
| HSA | $4,300/$8,550 | Triple tax advantage | Healthy, HDHP enrollees |
| SEP IRA | $69,000 | Tax-deductible, taxed on withdrawal | Self-employed, high earners |
| Taxable Brokerage | Unlimited | Capital gains taxes | Flexibility, early retirement |
Frequently Asked Questions
What are the best alternatives to a 401(k)?
The best 401(k) alternatives include: Traditional and Roth IRAs for tax-advantaged growth, Gold IRAs for precious metals diversification, Health Savings Accounts (triple tax advantage), real estate investments, taxable brokerage accounts for flexibility, and SEP/SIMPLE IRAs for self-employed individuals.
Can I have a Gold IRA instead of a 401(k)?
Yes, a Gold IRA is a self-directed IRA that allows you to hold physical gold, silver, platinum, and palladium. You can contribute directly or roll over funds from an existing 401(k) tax-free. It provides diversification beyond stocks and bonds with the same tax advantages as traditional IRAs.
What if my employer doesn't offer a 401(k)?
If your employer doesn't offer a 401(k), you can open a Traditional or Roth IRA (up to $7,000/year in 2026), contribute to an HSA if you have a high-deductible health plan, invest in real estate or taxable accounts, or if self-employed, open a SEP IRA with much higher contribution limits ($69,000).
Ready to Diversify Beyond Your 401(k)?
A Gold IRA lets you add physical precious metals to your retirement portfolio.
Thomas Richardson
Former wealth manager turned Gold IRA researcher. After 20 years in finance, I got tired of watching scammers prey on retirees. Now I investigate companies and publish what I find—good or bad.