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SOLO 401(k)

You work for yourself. Your retirement plan should work twice as hard.

The Solo 401(k) is the most powerful retirement savings vehicle available to self-employed individuals and owner-only businesses. Because you’re both the employer and the employee, you contribute from both sides — and the combined limit in 2026 is $72,000 ($80,000 if you’re catch-up eligible).
That’s not a typo. A Solo 401(k) lets you shelter more income than a SEP IRA, more than a SIMPLE IRA, and more than any individual retirement account — while maintaining the simplicity of a plan designed for one.
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How Solo 401(k) Contributions Work in 2026

The Solo 401(k) power comes from the double contribution — you make deposits from both sides of your business relationship with yourself:

As the employee

You can defer up to $24,500 of your compensation in 2026, or 100% of compensation if it’s less than that. If you’re 50 or older: add $8,000 in catch-up contributions. If you’re between 60 and 63: the SECURE 2.0 super catch-up allows up to $11,250 instead of $8,000.

As the employer

You can contribute up to 25% of your compensation (or net self-employment income, using the IRS formula for sole proprietors) as a profit-sharing contribution. This is separate from and in addition to your employee deferral.

Combined limit

The total of both contributions — employee deferral plus employer profit-sharing — cannot exceed $72,000 in 2026 ($80,000 for catch-up eligible participants). Compensation used for the calculation is capped at $360,000.

Solo 401(k) vs. SEP IRA: Why the Solo 401(k) Usually Wins

Both are popular choices for self-employed individuals, but the Solo 401(k) typically allows significantly higher contributions — especially for business owners who want to maximize their employee deferral component. Here’s the key difference:
  • SEP IRA: employer-side only, up to 25% of compensation. No employee deferral. Maximum $72,000 in 2026.
  • Solo 401(k): employee deferral up to $24,500 PLUS employer contribution up to 25% of compensation. Same $72,000 ceiling — but easier to reach because you’re filling it from two directions.
For a self-employed individual earning $80,000, the SEP IRA limits contributions to around $14,800 (25% of net self-employment income after deductions). A Solo 401(k) allows up to $24,500 in employee deferrals alone — potentially more than double.
The Solo k is almost always the stronger choice. The main exception: if you have employees other than a spouse, you can’t use a Solo 401(k) (it’s for owner-only businesses). In that case, a standard 401(k) or Safe Harbor plan is the path.

The Solo 401(k) is the IRS’s best gift to self-employed business owners. Most of them are leaving tens of thousands in tax-deferred savings on the table by not using one.

What 401GO includes in every Solo 401(k)

  • Fast, guided plan setup — most owners are done in under 15 minutes
  • Plan document creation and maintenance
  • Both traditional pre-tax and Roth contribution options
  • Profit-sharing contribution tracking
  • Form 5500-EZ support when plan assets exceed $250,000
  • Investment access through Matrix Trust custodial platform
  • Mobile app for on-the-go account management
  • Dedicated human support contact
FREQUENTLY ASKED QUESTIONS

Questions? We’ve Got Answers.

Honest answers about how the platform works, what it costs, and where it fits.
Can my spouse also contribute to my Solo 401(k)?

Yes — if your spouse works in the business and receives compensation from it, they can contribute to the Solo 401(k) as an employee. This is one of the ways a Solo 401(k) can effectively double your household’s retirement savings in a single year. Note that the employee deferral limit ($24,500) applies per person, not per plan.

The Solo 401(k) is only available to businesses with no employees other than a spouse. If you hire a full-time employee, you’ll need to transition to a standard 401(k) or Safe Harbor plan. 401GO can manage that transition without losing your plan history or requiring you to switch providers.
Once your Solo 401(k) plan assets exceed $250,000 at year-end, you’re required to file Form 5500-EZ annually with the IRS. 401GO provides support for this filing. Plans under $250,000 have no annual filing requirement.
Yes, if the plan document allows it. Roth contributions to a Solo 401(k) are made after-tax, and qualified withdrawals in retirement are tax-free. This can be an attractive option for self-employed individuals who expect to be in a higher tax bracket in retirement, or who want tax diversification in their savings strategy.
To make employee deferral contributions, the plan must be established by December 31 of the tax year. Employer profit-sharing contributions can be made up to the business tax filing deadline (including extensions). Setting up the plan before year-end is strongly recommended to preserve maximum flexibility.

The Right Plan for Every Client

401GO covers the full range of retirement needs so you can say yes to the right plan for you.

Standard 401(k)

The core offering, built for SMBs

Safe Harbor 401(k)

Simplified compliance for employers who want it

Starter 401(k)

For businesses just getting started

Solo 401(k)

For owner-only businesses

ERISA 403(b)

Purpose-built for tax-exempt organizations

Traditional IRA

Individual retirement access

Cash Balance

For businesses with more complex planning needs

FUTURES BUILT HERE

You built the business. Now build the retirement to match.

The Solo 401(k) is the most powerful retirement plan available to self-employed individuals — and one of the most underused. Set it up today. Contribute from both sides. Keep more of what you’ve earned.
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