Last updated: July 2026 · Contribution limits, fees, and plan features verified quarterly. Confirm the current terms on each provider’s site before you open an account, since fees and IRS limits change every year.
Fidelity is our top pick for most self-employed savers opening a solo 401(k) in 2026. It charges no setup or annual fee, now offers both traditional and Roth contributions, and its zero-expense index funds cut long-term costs to the bone. Choose E*TRADE if you need a 401(k) loan option, or Carry if you want loans plus the mega-backdoor Roth in one plan.
A solo 401(k) is the most powerful retirement account available to a self-employed person with no employees. It lets you save as both the worker and the boss, which pushes your yearly limit far past what an IRA allows. For 2026 that ceiling reaches $72,000, and more if you are older. The question is not whether to open one. It is where to open it.
The best solo 401(k) providers are not all the same, and the differences decide real money. Some are free but bare. Others charge a fee and unlock features the free plans will not touch, like participant loans and the mega-backdoor Roth. This guide ranks the top individual 401(k) accounts for freelancers, consultants, and one-person S-corps, compared on the features that actually matter: fees, the Roth option, loan access, and after-tax contributions.
Below you will find a quick-pick comparison table high on the page, honest reviews of each provider with the cons named out loud, a plain-English look at the setup process and deadlines, a contribution math example for 2026, and the paperwork you owe once your balance grows. If you have ever asked where you should open a solo 401(k), this is the answer, laid out so you can pick in a few minutes.
Best solo 401(k) providers at a glance
Here is how the leading individual 401(k) accounts compare on the four features that decide the winner. All figures reflect 2026 plan terms. A free brokerage plan suits most savers, while a paid self-directed plan earns its cost only if you need loans, alternative assets, or the mega-backdoor Roth.
| Provider | Fees | Roth option | 401(k) loans | Mega-backdoor Roth | Best for |
|---|---|---|---|---|---|
| Fidelity | $0 setup / $0 annual | Yes | No | No | Best overall value |
| E*TRADE | $0 setup / $0 annual | Yes | Yes | No | Free plan with a loan option |
| Charles Schwab | $0 setup / $0 annual | Yes | No | No | Full-service brokerage backup |
| Carry | ~$299/year | Yes | Yes | Yes | Every feature in one plan |
| My Solo 401k Financial | ~$525 setup / ~$125 year | Yes | Yes | Yes | Self-directed & alternatives |
The split is clear. The three free brokerage plans, Fidelity, E*TRADE, and Schwab, cover almost everyone at no cost. The two paid plans, Carry and My Solo 401k, exist for the saver who has outgrown a simple stock-and-fund account and needs the advanced tools a prototype plan will not allow.
How we chose this list
We started with the true one-person business: a freelancer, contractor, or self-employed owner with no full-time employees besides a spouse. To make this list, a provider had to offer a genuine solo 401(k) with a Roth option, transparent fees, and a plan document that holds up with the IRS. That focus is what separates a serious individual 401(k) account from a generic brokerage login.
From there we weighed the features that change outcomes. Cost came first, since a fee compounds against you for decades. Then the Roth option, because tax-free growth is often the whole point for a younger saver. We looked hard at two advanced tools most people overlook: the participant loan, which lets you borrow from your own balance, and the mega-backdoor Roth, which can move far more money into tax-free growth than the standard limits suggest. We favored providers that name every fee and let you do what the plan advertises without a surprise.
Free brokerage plans vs paid self-directed plans
The first fork in the road is the one most guides skip. Solo 401(k) providers fall into two camps, and knowing which you need saves both money and regret. Pick the wrong camp and you either overpay for features you will never touch or open a free plan that blocks the exact move you wanted to make.
Free brokerage plans come from big names like Fidelity, E*TRADE, and Schwab. They use a prototype plan document the broker maintains, they charge nothing to open or keep, and they let you invest in stocks, ETFs, and mutual funds commission-free. The trade-off is that these plans keep their feature set narrow to stay free, so most block alternative assets and, with the notable exception of E*TRADE, block participant loans.
Paid self-directed plans come from specialists like Carry and My Solo 401k Financial. You pay a setup fee or an annual fee, and in return you get a custom plan document that unlocks the advanced tools: participant loans, the mega-backdoor Roth through after-tax contributions, and the freedom to hold real estate, private companies, or other alternative assets. If none of those words apply to you, a free plan is the smarter choice.
Now the detailed reviews. Each pick below names the provider as its own heading, states the fees and feature set for 2026, and gives you an honest reason you might skip it.
Fidelity
Best overall value for a solo 401(k). Fidelity is the plan most self-employed savers should open first. There is no setup fee and no annual account fee, and in a welcome change the plan now supports both traditional and Roth contributions, closing the one gap that used to hold it back. You trade stocks and ETFs commission-free, and you get the full weight of one of the largest brokerages behind your retirement money.
The standout is cost at the fund level. Fidelity offers zero-expense-ratio index funds such as FZROX and FZILX, which charge nothing in ongoing fund fees. Over thirty years, a fund expense you never pay is money that stays invested and compounds, and no rival on this list matches that. For a buy-and-hold saver building a simple portfolio, the long-term math is hard to beat.
Fidelity fits the freelancer who wants a free, low-cost, name-brand home for retirement savings and does not need exotic features. It suits index investors especially well. The plan does not offer participant loans, so if borrowing from your balance matters to you, look to E*TRADE or a paid plan instead. For everyone else, this is the default answer.
See how much you can contribute →Skip it if: you need a 401(k) loan, want to hold alternative assets, or plan to use the mega-backdoor Roth. The free plan does not allow those moves.
E*TRADE
Best free plan with a loan option. E*TRADE, now part of Morgan Stanley, is the rare free solo 401(k) that lets you borrow from yourself. There is no setup or annual fee, the plan supports both traditional and Roth contributions, and stock and ETF trades are commission-free. That combination of zero cost and a loan feature is unusual, and it is why E*TRADE earns a place beside Fidelity.
The loan is the reason to choose it. E*TRADE lets you take a participant loan of up to $50,000 or half your vested balance, whichever is less, with no loan setup fee. For a self-employed person whose income swings from month to month, the ability to tap retirement savings in a pinch, then repay yourself with interest, is a genuine safety valve that Fidelity and Schwab do not offer on their free plans.
E*TRADE suits the freelancer who wants a free brokerage plan but values the option to borrow against it. It does not offer the mega-backdoor Roth or alternative assets, so heavy savers chasing after-tax contributions will still need a paid plan. But as a free plan with a loan built in, it stands nearly alone.
Compare more retirement accounts →Skip it if: you want the mega-backdoor Roth or plan to invest in real estate or private assets. The free plan stops at stocks, ETFs, and funds.
Charles Schwab
Best full-service brokerage backup. Charles Schwab rounds out the free trio with a solid, no-fee solo 401(k) that now offers both traditional and Roth contributions. There is no setup or annual fee, stock and ETF trades are commission-free, and you get access to Schwab’s deep research, branch network, and highly rated customer service. For someone who already banks or invests at Schwab, keeping retirement there is convenient.
The plan is capable but conventional. Schwab covers the fundamentals well and gives you a broad menu of funds and ETFs, though it lacks the zero-expense index funds that make Fidelity cheaper at the fund level. Like Fidelity, Schwab does not offer participant loans on its solo 401(k), so borrowing from your balance is off the table here.
Schwab suits the freelancer who values a large, full-service brokerage and perhaps already has other accounts under its roof. It is a close second to Fidelity on features and a strong choice on service. Pure cost-minimizers will still edge toward Fidelity’s zero-fee funds, but you will not go wrong keeping everything at Schwab.
Run your retirement numbers →Skip it if: you want the lowest possible fund costs or need a loan feature. Fidelity’s zero-expense funds win on price and E*TRADE wins on loans.
Carry
Best plan with every feature in one place. Carry is a paid, self-directed solo 401(k) that does what the free plans will not. For roughly $299 a year it unlocks the full toolkit: a Roth option, participant loans, and the mega-backdoor Roth through after-tax contributions, all wrapped around an integrated brokerage account so you do not have to bolt on a third-party custodian yourself.
The appeal is convenience with power. Where a specialist plan might send you to find your own bank or brokerage, Carry keeps investing, contributions, and compliance under one modern dashboard. If you earn enough to want the mega-backdoor Roth, which lets you funnel far more into tax-free growth than the standard employee limit, and you also want the option of a loan, Carry delivers both without stitching services together.
Carry fits the higher-earning freelancer or one-person business that has outgrown a basic brokerage plan and wants advanced tax moves without the hassle. The yearly fee is real, so it only pays off if you actually use the extra features. A saver who just buys index funds does not need it and should stay free.
Estimate your mega-backdoor room →Skip it if: you only plan to buy stocks and funds up to the normal limits. You would be paying yearly for features a free plan covers.
My Solo 401k Financial
Best for self-direction and alternative assets. My Solo 401k Financial is a specialist provider built for savers who want to invest beyond Wall Street. It charges roughly $525 to set up and about $125 a year, and in return you get a custom plan document that supports a Roth option, participant loans, the mega-backdoor Roth, and the freedom to hold real estate, private lending, precious metals, and other alternative assets inside your retirement plan.
The strength here is control and compliance support. The firm helps you establish the plan, obtain an EIN, and stay on top of paperwork, which matters more once you leave the guardrails of a big brokerage. You choose your own bank or brokerage to hold the assets, giving you flexibility a prototype plan cannot, along with the responsibility that comes with a truly self-directed account.
My Solo 401k suits the experienced investor who wants alternatives or full checkbook control and will use the advanced features to justify the cost. It is overkill for someone who simply wants to buy index funds. If real estate or private deals are your plan, though, this kind of specialist is exactly what a free brokerage cannot replace.
Explore the retirement guides →Skip it if: you plan to invest only in mainstream stocks and funds. The setup fee buys flexibility you would never use.
Solo 401(k) contribution limits for 2026
Understanding the limits is what makes a solo 401(k) so appealing, because you contribute in two roles at once. As the employee, you can defer up to $24,500 of your compensation in 2026. As the employer, your business can add a profit-sharing contribution of up to 25% of your net self-employment earnings on top of that. The two combined cannot exceed $72,000 for savers under 50.
Older savers get more room. If you are 50 or over, a catch-up contribution of $8,000 lifts your employee deferral to $32,500 and your combined ceiling to $80,000. A special enhanced catch-up applies at ages 60 through 63, raising the catch-up to $11,250, the employee deferral to $35,750, and the total limit to $83,250. These higher brackets are a major reason near-retirees favor this account.
One new wrinkle arrives in 2026. Under the SECURE 2.0 rules, high earners whose prior-year FICA wages topped $150,000 must make their catch-up contributions as Roth rather than pre-tax. This mainly affects those paying themselves W-2 wages through an S-corp, and many self-employed owners managing their own plan will not be caught by it, but it is worth checking with your provider before you set your deferrals.
Do the contribution math before you commit
Your exact employer contribution depends on your net self-employment income after the deduction for half your self-employment tax, and that math trips up almost everyone. Our free calculators work out your maximum solo 401(k) contribution in seconds, so you fund the account correctly the first time.
Open the free calculators →A contribution example for 2026
Numbers make the two-role system click. Picture a freelance designer under 50 with $120,000 in net self-employment income for 2026. As the employee, she defers the full $24,500. As the employer, her business adds a profit-sharing contribution of roughly 20% of her net earnings, which lands near $22,000 after the self-employment-tax adjustment. Together that is about $46,500 saved in a single year, far beyond the $7,000 an IRA would allow.
Now raise the income. A consultant earning $250,000 could hit the full $72,000 ceiling, since the 25% employer share alone reaches the cap once profit is high enough. That is the quiet superpower of the individual 401(k): the more your one-person business earns, the more tax-advantaged space it opens. The employer percentage is 20% for a sole proprietor and 25% of W-2 wages for an S-corp, so your business structure changes the exact figure. Always run your own numbers, because the self-employment-tax deduction makes the real limit slightly lower than a flat 25% suggests.
How to set up a solo 401(k) and the deadlines that matter
Opening a solo 401(k) is more paperwork than an IRA but still manageable in an afternoon. You start by confirming you qualify, which means self-employment income and no full-time employees other than a spouse. You then obtain an Employer Identification Number from the IRS, a free online step, and complete the provider’s plan adoption agreement and application. At a free brokerage you can often do this entirely online; a specialist plan will guide you through a custom plan document.
The deadlines are where people slip. To make employee salary deferrals for a tax year, your plan generally must be established by December 31 of that year, so a plan opened in January cannot capture the prior year’s deferrals. Thanks to the SECURE Act, though, you can now open a plan as late as your tax-filing deadline, including extensions, and still make employer profit-sharing contributions for the prior year. In practice that means setting up before year-end is the safe move if you want the full deferral, while the employer piece has more breathing room.
Funding follows the same logic. Employee deferrals should be earmarked by year-end, while employer contributions can be made up to your filing deadline with extensions. Mark December 31 on your calendar as the date that protects your deferral, and treat the tax deadline as the outer limit for the employer share.
The paperwork obligation most savers forget
A solo 401(k) carries one ongoing duty that catches people off guard. Once the total value of your plan assets reaches $250,000 at the end of a year, you must file IRS Form 5500-EZ each year going forward. Below that threshold there is no annual filing, which is part of what makes the account so low-maintenance in its early years.
Form 5500-EZ is an information return, not a tax bill, and it is due by July 31 for a calendar-year plan. Free brokerage plans generally leave this task to you, so a zero-fee plan can carry a hidden cost in the form of a CPA’s time once you cross the threshold. Specialist providers like My Solo 401k often help prepare the filing as part of their service, which is one way a paid plan can earn back its fee. You also file a final Form 5500-EZ in the year you close or fully distribute the plan, regardless of the balance, so keep the requirement in mind at both ends of the account’s life.
How to choose the right solo 401(k) provider
Start with one honest question: will you use the advanced features, or not? If you plan to buy stocks, ETFs, and index funds up to the normal limits, a free brokerage plan is all you need, and Fidelity’s zero-expense funds make it the value leader. If you want the option to borrow from your balance, E*TRADE is the free plan that allows it. There is no single best solo 401(k), only the best one for how you actually invest.
If your needs run deeper, pay for the plan that meets them. A high earner who wants the mega-backdoor Roth to shelter far more in tax-free growth should look at Carry, which bundles that feature with loans and an integrated brokerage. An investor who wants real estate, private lending, or full checkbook control belongs at a self-directed specialist like My Solo 401k Financial. Match the plan to your strategy, open it before December 31 to protect your deferral, and remember the Form 5500-EZ duty once you cross $250,000. Get those three things right and the account does the rest.
Conclusion
The best solo 401(k) provider for 2026 comes down to the features you will genuinely use, not the longest brochure. Fidelity wins on overall value with no fees, a Roth option, and zero-expense index funds that quietly save you money for decades. E*TRADE matches it as a free plan and adds a participant loan, while Schwab offers a strong full-service alternative for anyone already in its ecosystem.
When you outgrow a basic brokerage plan, a paid self-directed provider takes over. Carry packs loans, the mega-backdoor Roth, and an integrated brokerage into one dashboard, and My Solo 401k Financial opens the door to real estate and other alternatives. Decide whether you need those tools before you pay for them, confirm your contribution math, and open the account in time to capture this year’s deferrals. A solo 401(k) is the biggest tax-advantaged account a self-employed person can build, so choosing the right home for it is worth the hour it takes.
Fees, plan features, and IRS contribution limits change often. This page is reviewed quarterly and was last verified in July 2026. Confirm current details with each provider and the IRS before opening or funding an account. Freelance Treasury is not an accountant or financial advisor and does not provide tax, legal, or investment advice.
Frequently asked questions
Where should I open a solo 401(k)?
Fidelity is the best choice for most self-employed savers, with no fees, a Roth option, and zero-expense index funds. Choose E*TRADE instead if you need a 401(k) loan feature.
What is the solo 401(k) contribution limit for 2026?
The combined employee and employer limit is $72,000 for savers under 50, rising to $80,000 at age 50 and $83,250 for ages 60 to 63. The employee deferral portion is $24,500.
Can I get a loan from my solo 401(k)?
Only if your provider allows it. Among free plans E*TRADE permits loans up to $50,000 or half your vested balance, while Fidelity and Schwab do not. Paid plans like Carry also allow loans.
Do I have to file any paperwork for a solo 401(k)?
You must file IRS Form 5500-EZ each year once your plan assets reach $250,000, due July 31. Below that balance no annual filing is required.