Solo 401(k)
retirementAlso known as: solo 401k, Individual 401(k), one-participant 401(k)
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
Solo 401(k) is the most powerful retirement vehicle for self-employed people without employees: combines employee deferrals ($24,500 in 2026) + employer profit-sharing (up to 25% of compensation), capped at $73,000 total. Roth Solo 401(k) variant allows after-tax contributions. Loan provision: can borrow up to 50% of balance ($50K max). Generally requires Form 5500 filing if assets exceed $250K (administrative complexity). Compared to SEP-IRA: same employer contribution limit but adds employee deferrals + Roth + loans. Cannot have employees (other than spouse) — disqualifies the plan.
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