Solo 401(k) Investment Accounts
A solo 401(k) is an individual 401(k) designed for a business owner with no employees. IRS rules say you can’t contribute to a solo 401(k) if you have full-time employees, though you can use the plan to cover both you and your spouse.
The Solo 401(k) provides the ability and flexibility to direct and control how contributions are invested. Profit sharing contributions and annual contributions can be made to a Solo 401(k) account and these contributions can potentially be tax-deductible.
Solo 401(k) Contribution Limits for 2025
Up to $69,000 with an additional $7,500 catch-up contribution if 50 years or older. Contributions are pre-tax with the ability to reduce your taxable income for that year.
As the employee, you can contribute $23,000 in 2025 or 100% of your income, whichever is less. If you are 50 or older than you can contribute an additional $7,500 in 2025.
As the employer, you can make a profit-sharing contribution of up to 25% of your compensation. There is a compensation limit of $350,00 in 2025.
If you are participating in a 401(k) at another job, the limit applies to contributions across all 401(k) plans. You will need to consult with your tax advisor to confirm your contributions to a Solo 401(k) plan.
Benefits of a Solo 401(k)
Investment growth will be tax-deferred — Investment will grow tax deferred with compound interest until retirement.
Investment Choices — Allows you to invest the funds with many investment choices enabling you to meet your long-term financial goals and invest the money based upon your risk tolerance.
Current year contributions may be tax deductible — You may be able to deduct all or part of your contributions from your federal income taxes. Please consult a tax advisor to determine how much can be deducted from your tax return.
Schedule a Meeting to Learn About Solo 401(k) IRA Accounts
If you are looking to create income for your retirement years, contact Safe Harbor to learn more. We offer a complimentary consultation to review your existing retirement plans and can provide guidance on the right IRA Account solution that will provide the money you need to live comfortably in your golden years. Contact us here or call at 614-760-0670 to schedule your initial consultation or to learn more about a Solo 401(k) account.
Solo 401k FAQs
What is a Solo 401(k)?
A Solo 401(k) is a retirement plan designed for self-employed individuals or small business owners with no full-time employees. It allows high contribution limits and flexible investment options.
Who qualifies for a Solo 401(k)?
Anyone who earns self-employment income and has no full-time W-2 employees (other than a spouse) can open one. Safe Harbor Wealth Advisors can create the Solo 401(k) account for your business after an initial consultation.
How much can I contribute to a Solo 401(k)?
You can contribute as both employer and employee, potentially reaching some of the highest retirement contribution limits available to individuals. Safe Harbor Wealth Advisors can help calculate your exact eligible amount.
Can a Solo 401(k) be used for self-directed investments?
Yes. Depending on how the plan is structured, you may invest in real estate, private lending, or other alternative assets. Safe Harbor advises on compliant structures and risk considerations.
Can I roll over a prior 401(k) or IRA into a Solo 401(k)?
Yes — most plans can be rolled in. Safe Harbor will coordinate the rollover and help structure assets under the new plan.
When is a Solo 401(k) better than a SEP IRA?
Solo 401(k)s often allow higher contributions (employee and employer profit sharing contributions), Roth options, and loan features. Safe Harbor Wealth Advisors can compare both options based on your income and business type.
Why work with Safe Harbor Wealth Advisors for a Solo 401(k)?
Safe Harbor Wealth Advisors helps you set up the plan correctly, choose the right structure, stay compliant, and maximize tax advantages — without the confusion of going it alone.