The best solo 401(k) providers will vary based on your unique circumstances. However, many will have a track record of providing a high-quality product, evidenced by consistently high customer reviews and ratings.
Since the best solo 401(k) provider will depend on your specific needs, we’ve selected companies that offer a wide range of investment options, low fees, and varying support services for things like tax guidance, preparation, and investment advice. Review our picks for the best solo 401(k) providers.
- ShareBuilder 401k: Best overall for flexibility and value
- Charles Schwab: Best for low fees
- Fidelity Investments: Best for frequent traders
- Ascensus (formerly Vanguard): Best for comprehensive support services
- My Solo 401k: Best for a simple pricing structure
- Rocket Dollar: Best for alternative investment options
- Best Solo 401(k) Providers at a Glance
- ShareBuilder 401k: Best Overall for Flexibility and Value
- Charles Schwab: Best for Low Fees
- Fidelity Investments: Best for Frequent Traders
- Ascensus (formerly Vanguard): Best for Comprehensive Support Services
- My Solo 401k: Best for a Simple Pricing Structure
- Rocket Dollar: Best for Alternative Investment Options
- How We Chose the Best Solo 401(k) Providers
- Alternatives to a Solo 401(k)
- Frequently Asked Questions (FAQs)
- Bottom Line
Best Solo 401(k) Providers at a Glance
| Setup Fee | Monthly Maintenance Fee | Annual Fund Fee | Administrative & Compliance Support | Account Setup Speed | |
|---|---|---|---|---|---|
 | $75-$150 | $8-$25 | 0.89% average | Yes | 1-7 days |
| Visit ShareBuilder 401k | |||||
 | $0 | $0 | Varies | Limited | 1-10 days |
| Visit Charles Schwab | |||||
 | $0 | $0 | Varies | Limited | 3-7 days |
| Visit Fidelity Investments | |||||
 | $100-$125 | $365 and up | 0.07% custodial fee | Yes | 2-7 days |
| Visit Ascensus | |||||
 | $525 | $10.42 | Not stated | Yes | 1-5 days |
| Visit My Solo 401k | |||||
 | $360-$600 | $20 or $30 | Varies | Limited | 2-4 weeks |
| Visit Rocket Dollar | |||||
ShareBuilder 401k: Best Overall for Flexibility and Value
| |
|---|---|
| Setup Costs & Fees | |
| Initial Setup Fee | $75-$150 |
| Monthly Fee | $8-$25 monthly |
| Annual Fund Fee | 0.89% average |
| Account Setup Speed | 1-7 days |
| Investment Options | Equity, fixed-income, specialty, stable value |
| Support Services | |
| Annual Compliance Support | Included; preparation of tax forms and access to a ShareBuilder advisor and customer care team |
Why We Like ShareBuilder 401k
ShareBuilder 401k offers two types of solo 401(k) plans depending on your needs.
- Its base “Saver” product comes with fewer features but has lower costs.
- Its premium “Plus” product has higher fees but comes with administration and recordkeeping services, additional tax support, and added options to conduct Roth and 401(k) loan transactions.
Regardless of your plan, ShareBuilder 401k investments can carry 23% to 68% fewer expenses than the industry average. You’ll also be able to take advantage of digital solutions that allow for automated paperwork and administration and easy accessibility. Support options include a technical hotline, a cell center, employee guides and videos, and compliance and audit support.
Additionally, ShareBuilder 401k has advisors to help you manage and implement your 401(k) plan. Since the company is not a fund provider and serves as an unbiased fiduciary, you can trust that its advisors are making the best decisions for your plan.
If a solo 401k is not the right product for you, consider ShareBuilder 401k’s other options, such as its safe harbor 401(k), traditional 401(k), and tiered profit-sharing 401(k) plans.
Charles Schwab: Best for Low Fees
| |
|---|---|
| Setup Costs & Fees | |
| Initial Setup Fee | $0 |
| Monthly Fee | $0 |
| Annual Fund Fee | Varies |
| Account Setup Speed | 1-10 days |
| Investment Options | Stocks, bonds, mutual funds, ETFs, and target date funds |
| Support Services | |
| Annual Compliance Support | Issuance of tax forms |
Why We Like Charles Schwab
Although Fidelity also has no account setup and monthly fees, we chose Charles Schwab as the best option for low fees because it offers commission-free trades for options, mutual funds, stocks, and ETFs. It also has no account balance minimums, and many of its other product offerings also charge $0 account opening and maintenance fees. This makes it an excellent option if you’d like to consolidate multiple financial services with the same company.
With Charles Schwab, managing your plan is made simple. You’ll be provided a plan document, and the company will handle the required distribution reporting for your business. It offers 24/7 service and support for its solo 401(k) plans. You’ll also get access to retirement planning tools, the ability to make pre-tax and Roth salary deferrals, and take tax-free distributions on qualified Roth contributions.
At a minimum, you’ll need to complete an account application and a contribution transmittal form. Depending on where you’ll be transferring funds from and your specific circumstances, additional paperwork may be needed. If you have additional questions, you can use the live chat feature on the company’s website or call one of its representatives using the company’s toll-free number.
Fidelity Investments: Best for Frequent Traders
| |
|---|---|
| Setup Costs & Fees | |
| Initial Setup Fee | $0 |
| Monthly Fee | $0 |
| Annual Fund Fee | Varies |
| Account Setup Speed | Typically 3-7 days |
| Investment Options | Mutual funds, stocks, ETFs, options, CDs, and more |
| Support Services | |
| Annual Compliance Support | Preparation of tax forms and plan documents and issuance of annual valuation statement |
Why We Like Fidelity Investments
Although fund fees for Fidelity Investments can vary, online US stock, ETF, and options trades all carry $0 commissions. As a result, active traders can save on costs compared with many other solo 401(k) providers. You can also consolidate other financial products with Fidelity Investments, as it offers products for life insurance, annuities, health savings accounts, and more.
With its solo 401(k), administrative and tax reporting requirements remain the responsibility of the business owner. That said, Fidelity Investments does offer service and guidance from the team. The company also assists with other basic administrative items, such as the preparation of certain plan documents, tax forms, and investment guidance. If you need help, submit your contact information online, then request a callback for the next steps.
Ascensus (formerly Vanguard): Best for Comprehensive Support Services
| |
|---|---|
| Setup Costs & Fees | |
| Initial Setup Fee | $100-$125 |
| Monthly Fee | Starting at $365 |
| Annual Fund Fee | 0.07% custodial fee and 0.25% investment fiduciary fee as applicable |
| Account Setup Speed | 2-7 days |
| Investment Options | Varies |
| Support Services | |
| Annual Compliance Support | Included; administration, recordkeeping, tax form preparation, participant statements, and rollover contributions |
Why We Like Ascensus
Earlier this year, Ascensus agreed to acquire several of Vanguard’s retirement products, one of which included its solo 401(k) plan. The new solo 401(k) product is branded under Ascensus as its Individual(k) product, and you can choose from one of three options: Ascensus CoPilot 3(38) daily value, Daily Value, and Non-Daily Value solo 401(k).
- The CoPilot option is geared towards those wanting investment options managed for them with online access to accounts.
- Daily Value accounts are a good option for those wanting more control over their accounts and investment choices.
- Non-Daily Value accounts may be better suited for those who primarily want to oversee investment options made by working with an advisor.
Fees and investment options may vary depending on which of the three solo 401(k) options you choose. However, all Ascensus solo 401(k) plans come with a dedicated support team, Roth capabilities, and the ability to take out loans against your balance. You can submit a request for a plan proposal online.
My Solo 401k: Best for a Simple Pricing Structure
| |
|---|---|
| Setup Costs & Fees | |
| Initial Setup Fee | $525 |
| Monthly Fee | $10.42 (charged as an annual fee of $125) |
| Annual Fund Fee | Not stated |
| Account Setup Speed | 1-5 days |
| Investment Options | Real estate, promissory notes, tax liens, and more |
| Support Services | |
| Annual Compliance Support | Included; preparation of tax forms, IRS determination letters, plan updates, and amendments per regulatory requirements |
Why We Like My Solo 401k
If you want transparency with the costs associated with getting a solo 401(k), then My Solo 401k is a good option. It has a flat fee structure that covers virtually everything, and its account setup and monthly fee covers multiple services, including establishing a fund for business partners and transfer of existing funds.
Working with My Solo 401k means you could also be eligible for up to $1,500 in tax credits, effectively making it free to establish this type of account with this provider. This tax credit is available for up to $500 annually for as long as three years and does not require you to make annual contributions to qualify.
A unique resource of My Solo 401k is its live daily Zoom calls. Here, you can ask general questions about the process to see if it might be right for you. To give you more confidence in working with the company, it also offers its clients a full compliance and audit guarantee, which includes access to a dedicated compliance officer and a Harvard law attorney.
Complete an online application before making a payment. When you’re done, you can begin investing.
Rocket Dollar: Best for Alternative Investment Options
| |
|---|---|
| Setup Costs & Fees | |
| Initial Setup Fee | $360 ($600 for premium plan) |
| Monthly Fee | $20 ($30 for premium plan) |
| Annual Fund Fee | Varies |
| Account Setup Speed | 2-4 weeks |
| Investment Options | Traditional and alternative investments allowed |
| Support Services | |
| Annual Compliance Support | Email support and issuance of tax forms |
Why We Like Rocket Dollar
Rocket Dollar offers two separate plans for its solo 401(k) product. Its silver plan provides basic features such as email support, document storage, and an online dashboard to manage your account easily. Its premium gold plan adds priority support, free wire transfers, expedited services, and tax filing forms.
Unlike many providers, Rocket Dollar allows for alternative investments—your only restriction is that investments must be allowed by the IRS. Some examples can include crowdfunding, real estate, gold, and farmland.
Rocket Dollar requires no minimum opening deposit and allows for a full 30-day refund if you are unsatisfied with your experience, minus any hard costs incurred by the company. Essentially, it’s risk-free for you to try a solo 401(k) through Rocket Dollar.
If you are not ready to start or have questions, call the company’s sales department using the toll-free number referenced on its home page.
How We Chose the Best Solo 401(k) Providers
We selected the best solo 401(k) providers based on the following criteria:
- Fees and other investment costs
- Administrative, audit, and compliance support
- Types of investment options available
- Time required to open an account
- Other plan features and capabilities
- Customer reviews and ratings
Alternatives to a Solo 401(k)
A solo 401(k) won’t be the best option for every business owner. Other retirement plans may provide more suitable eligibility criteria, contribution limits, investment options, and more.
- Traditional or Roth IRA: Anyone with an earned income is eligible to open an IRA, and contribution limits are currently $7,000 for 2024. Traditional IRAs allow for after-tax dollars, while Roth IRA contributions are made with pre-tax dollars. Roth IRAs can be opened by individuals who earn less than $161,000 (or $240,000 for married couples filing joint taxes).
- SEP-IRA: This can be a good option if you don’t want the paperwork or filing requirements of a 401(k). Contribution limits for 2024 are the lesser of $69,000 or 25% of an employee’s net income.
- SIMPLE IRA: SIMPLE IRAs can be a good option for companies wanting to provide benefits to employees without the need to adhere to as many reporting or regulatory requirements. One example of an employee benefit is that SIMPLE IRAs require employers to match employee contributions. This type of retirement account has a lower contribution limit, currently $16,000 for the 2024 tax year.
Frequently Asked Questions (FAQs)
Am I eligible for a solo 401(k)?
You must be a business owner with no employees, or employ only your spouse, to be eligible for a solo 401(k). Solo 401(k) accounts allow for a maximum of $69,000 in annual contributions for 2024, while those aged 50 and older may contribute an additional $7,500.
Is there a difference between a solo 401(k), a self-employed 401(k), and an individual 401(k)?
No. In many cases, companies use these terms interchangeably. Before you open an account, however, you should read the terms and conditions to ensure that the retirement account suits your needs and goals.
How often do I need to file tax forms with the IRS?
To avoid penalties, certain tax forms may need to be filed on an annual basis to remain compliant with regulatory requirements. However, due to the complexity of tax law, we recommend speaking with an accountant to determine unique circumstances that may apply to your business.
Bottom Line
Solo 401(k) providers are not all created equal. Each has varying costs, investment options, levels of support, and other features. In selecting a solo 401(k) provider, you should consider the qualities and features most important to you, as selecting the wrong one can be costly and time-consuming.
