Article

Solo 401(k)

August 22, 2026 · Aditya Gupta

Retirement

A Solo 401(k) (also Individual 401(k)) is a retirement plan for self-employed individuals with no employees other than a spouse. It allows higher contributions than SEP-IRA at lower income levels by combining employee ($24,000 for 2026 + $7,500 catch-up at 50+) and employer (25% of net SE income) contributions, up to the $70,000 total cap. Roth Solo 401(k) options are available — letting high earners stash Roth dollars they can't reach via Roth IRA. Setup requires more paperwork than SEP-IRA and annual Form 5500 if assets exceed $250K. Loans permitted (up to 50% of balance, max $50K).

Personal Finance

Related terms

Back to the finance glossary