Easy, affordable, and comprehensive—our flexible Solo 401(k) plans empower self-employed individuals to maximize their retirement savings, delivering all the benefits of a large-scale business plan.
The Solo 401(k) Built for the Self-Employed
What is a Solo 401(k)?
A Solo 401(k) is a retirement savings plan designed for self-employed individuals or small business owners with no employees, apart from a spouse. It offers the benefits of a traditional 401(k) but tailored specifically to individuals who wear both the employer and employee hats. The Solo 401(k) allows participants to make contributions in both capacities, giving them the ability to save more than they could with other retirement options like SEP IRAs or SIMPLE IRAs​
Definition and Purpose of the Solo 401(k) for self-employed individuals.
The Solo 401(k) is intended to provide self-employed people with the opportunity to save for retirement in a tax-advantaged way. The participant can defer a portion of their income into the account, where it can grow through investments like stocks, bonds, and mutual funds. The earnings on these investments are either tax-deferred (traditional Solo 401(k)) or tax-free (Roth Solo 401(k)). Contributions as an employer can also be made up to 25% of net income​.
Solo 401(K) VS Traditional 401(K) plan
| Eligibility | Self-employed individuals with no employees (except spouse) | Employees of companies with employer-sponsored plans |
|---|---|---|
| Employee Contribution Limit (2024) | $23,000 | $23,000 |
| Employer Contribution | Up to 25% of net earnings from self-employment | Employer match or profit-sharing (varies by employer) |
| Catch-Up Contributions (Age 50+) | $7,500 | $7,500 |
| Total Contribution Limit (2024) | $69,000 (or $76,500 with catch-up) | Varies by employer and IRS limits |
| Roth Option Available | Yes | Yes |
| Plan Administration | Simpler, self-administered; minimal reporting if under $250,000 | Typically more complex; employer handles reporting |
| Spouse Inclusion | Yes, if spouse is an employee | Not applicable |
| Required Minimum Distributions (RMDs) | Yes, after age 73 | Yes, after age 73 |
Unlock Your Ultimate Guide to Solo 401(k) for Self-Employed Individuals!
Are you a self-employed individual or a small business owner without employees? Discover the full potential of the Solo 401(k) plan, a powerful retirement tool that allows you to act as both the employer and employee, maximizing your annual contributions and tax savings.
This comprehensive guide will help you:
Understand What a Solo 401(k) Is
Learn how this unique plan is designed specifically for self-employed professionals and the tax advantages it offers.
Set Up Your Own Solo 401(k)
Get a step-by-step breakdown of the setup process, from choosing the right provider to opening and funding your account.
Compare Against Traditional Plans
See how the Solo 401(k) stacks up against SEP IRAs, SIMPLE IRAs, and traditional 401(k)s with detailed comparisons.
Explore Investment Flexibility
Find out about investment options from stocks and bonds to real estate, cryptocurrency, and more!
Stay Compliant with IRS Rules
Avoid common pitfalls like over-contributing and understand reporting requirements to keep your plan in top shape.
Maximize Contributions & Benefits
Whether you’re in growth mode or approaching retirement, see how the Solo 401(k) can help you reach your financial goals with high contribution limits and Roth or pre-tax choices.
Download the Solo 401(k) Guide
Download the guide now and take the first step toward securing your financial future with a Solo 401(k). This guide is crafted to empower self-employed individuals and small business owners with insights into creating a tax-advantaged retirement plan tailored to your unique needs.
