by
Garrett Clark
Retirement Planning
ONLY 3% OF ELIGIBLE SELF-EMPLOYED PEOPLE USE A SOLO 401(K)
Despite the massive tax advantages and long-term wealth potential, only 3% of eligible self-employed individuals take advantage of a Solo 401(k). This blog explores why the remaining 97% are missing out—and how failing to act now could mean sacrificing financial security later. We’ll break down the common misconceptions, highlight the benefits, and show you why joining the top 3% is not only smart—it’s essential. Whether you're a freelancer, contractor, or business owner, this could be the retirement strategy you've been overlooking.
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If you're self-employed or run a side business, there's a 97% chance you're missing out on some of the most powerful financial tools available: the Solo 401 (k). According to industry surveys and IRS data, only 3% of eligible self-employed individuals use a Solo 401 (k). That means millions of business owners and freelancers leave thousands of dollars in tax savings and retirement growth on the table every year. Let's unpack why this statistic matters - and why being part of the 97% is costing you more than you think.
The Solo 4010: A Wealth-Building Powerhouse Hiding in Plain Sight
The Solo 401k, also called an Individual 4010 is a retirement plan designed specifically for.
Self-employed individuals
Freelancers
Sole proprietors
Side hustlers with no full-time employees
What makes it so powerful?
Massive Contribution Limits Up to $66,000 in 2025 (or $73,500 if you're 50+1), combining employee and employer contributions.
Roth or Traditional Options: Choose tax-deferred or tax-free growth
Business Loan Feature: Borrow up to $50,000 from your plan
Full Control Over Investments: Beyond stocks and mutual funds- you can invest in real estate, private equity, and more.
Here are the most common reasons:
Lack of awareness - Many entrepreneurs don't know it exists or don't realize they qualify.
Intimidation factor - Some assume it's too complex or only for high earners.
Procrastination. Business owners often delay retirement planning while focusing on growth or reinvestment
Over-reliance on IRAs - While IRAs are great, their contribution limit ($7,000) in 2025 is a fraction of the Solo 401(k)'s.
If you're self-employed or run a side business, there's a 97% chance you're missing out on some of the most powerful financial tools available: the Solo 401 (k). According to industry surveys and IRS data, only 3% of eligible self-employed individuals use a Solo 401 (k). That means millions of business owners and freelancers leave thousands of dollars in tax savings and retirement growth on the table every year. Let's unpack why this statistic matters - and why being part of the 97% is costing you more than you think.
The Solo 4010: A Wealth-Building Powerhouse Hiding in Plain Sight
The Solo 401k, also called an Individual 4010 is a retirement plan designed specifically for.
Self-employed individuals
Freelancers
Sole proprietors
Side hustlers with no full-time employees
What makes it so powerful?
Massive Contribution Limits Up to $66,000 in 2025 (or $73,500 if you're 50+1), combining employee and employer contributions.
Roth or Traditional Options: Choose tax-deferred or tax-free growth
Business Loan Feature: Borrow up to $50,000 from your plan
Full Control Over Investments: Beyond stocks and mutual funds- you can invest in real estate, private equity, and more.
Here are the most common reasons:
Lack of awareness - Many entrepreneurs don't know it exists or don't realize they qualify.
Intimidation factor - Some assume it's too complex or only for high earners.
Procrastination. Business owners often delay retirement planning while focusing on growth or reinvestment
Over-reliance on IRAs - While IRAs are great, their contribution limit ($7,000) in 2025 is a fraction of the Solo 401(k)'s.
"When 97% overlook the Solo 401(k), it's not just a missed opportunity, it's a delayed dream. Financial freedom isn’t a luxury for the few; it’s a plan for the prepared."
Garrett Clark
Director of Sales
What It's Costing the 97%
Let's do some simple math.
If you're earning $100,000 in your business and contributing just $20,000/year to a Solo 4010d at an 8% return, over 25 years, that could grow to more than $1.5 million
Without it? That's money lost to taxes or spent, not invested.
Even worse, not saving at all means no safety net and dependence on Social Security or late-career income. That's a risk most can't afford to take.
Who Should Be Using It?
Run a side hustle or freelance gig (even part-time)
Are you a contractor or 1099 worker
Have no full-time W-2 employees (besides a spouse)
Want to lower your tax bill and save for retirement? Then you qualify.
How to Join the 3% (And Why It's Easier Than You Think)
Set Up Is Simple: Providers like Fidelity, Charles Schwab, and dedicated Solo 401(k) firms make it straightforward
Start Small. You don't need $ 60,000 - start with $1,000 or whatever your budget allows
Make It Automatic: Just like payroll deductions, automate monthly contributions from your business income
Talk to a Pro: A financial advisor or tax strategist can show you how to integrate it into your overall wealth plan
Be the Exception, Not the Statistic
Most self-employed people think they'll get to retirement planning "someday." But "someday" has a way of becoming "too late." If you're serious about growing your business and securing your financial future, the Solo 401(k) is not optional; it's essential. So don't be part of the 97%. Be the self-employed success story who saw the opportunity, took action, and built a retirement plan to match the hustle.
Visit www.survival401k.com for more information!
What It's Costing the 97%
Let's do some simple math.
If you're earning $100,000 in your business and contributing just $20,000/year to a Solo 4010d at an 8% return, over 25 years, that could grow to more than $1.5 million
Without it? That's money lost to taxes or spent, not invested.
Even worse, not saving at all means no safety net and dependence on Social Security or late-career income. That's a risk most can't afford to take.
Who Should Be Using It?
Run a side hustle or freelance gig (even part-time)
Are you a contractor or 1099 worker
Have no full-time W-2 employees (besides a spouse)
Want to lower your tax bill and save for retirement? Then you qualify.
How to Join the 3% (And Why It's Easier Than You Think)
Set Up Is Simple: Providers like Fidelity, Charles Schwab, and dedicated Solo 401(k) firms make it straightforward
Start Small. You don't need $ 60,000 - start with $1,000 or whatever your budget allows
Make It Automatic: Just like payroll deductions, automate monthly contributions from your business income
Talk to a Pro: A financial advisor or tax strategist can show you how to integrate it into your overall wealth plan
Be the Exception, Not the Statistic
Most self-employed people think they'll get to retirement planning "someday." But "someday" has a way of becoming "too late." If you're serious about growing your business and securing your financial future, the Solo 401(k) is not optional; it's essential. So don't be part of the 97%. Be the self-employed success story who saw the opportunity, took action, and built a retirement plan to match the hustle.
Visit www.survival401k.com for more information!
If you're self-employed or run a side business, there's a 97% chance you're missing out on some of the most powerful financial tools available: the Solo 401 (k). According to industry surveys and IRS data, only 3% of eligible self-employed individuals use a Solo 401 (k). That means millions of business owners and freelancers leave thousands of dollars in tax savings and retirement growth on the table every year. Let's unpack why this statistic matters - and why being part of the 97% is costing you more than you think.
The Solo 4010: A Wealth-Building Powerhouse Hiding in Plain Sight
The Solo 401k, also called an Individual 4010 is a retirement plan designed specifically for.
Self-employed individuals
Freelancers
Sole proprietors
Side hustlers with no full-time employees
What makes it so powerful?
Massive Contribution Limits Up to $66,000 in 2025 (or $73,500 if you're 50+1), combining employee and employer contributions.
Roth or Traditional Options: Choose tax-deferred or tax-free growth
Business Loan Feature: Borrow up to $50,000 from your plan
Full Control Over Investments: Beyond stocks and mutual funds- you can invest in real estate, private equity, and more.
Here are the most common reasons:
Lack of awareness - Many entrepreneurs don't know it exists or don't realize they qualify.
Intimidation factor - Some assume it's too complex or only for high earners.
Procrastination. Business owners often delay retirement planning while focusing on growth or reinvestment
Over-reliance on IRAs - While IRAs are great, their contribution limit ($7,000) in 2025 is a fraction of the Solo 401(k)'s.
"When 97% overlook the Solo 401(k), it's not just a missed opportunity, it's a delayed dream. Financial freedom isn’t a luxury for the few; it’s a plan for the prepared."
Garrett Clark
Director of Sales
What It's Costing the 97%
Let's do some simple math.
If you're earning $100,000 in your business and contributing just $20,000/year to a Solo 4010d at an 8% return, over 25 years, that could grow to more than $1.5 million
Without it? That's money lost to taxes or spent, not invested.
Even worse, not saving at all means no safety net and dependence on Social Security or late-career income. That's a risk most can't afford to take.
Who Should Be Using It?
Run a side hustle or freelance gig (even part-time)
Are you a contractor or 1099 worker
Have no full-time W-2 employees (besides a spouse)
Want to lower your tax bill and save for retirement? Then you qualify.
How to Join the 3% (And Why It's Easier Than You Think)
Set Up Is Simple: Providers like Fidelity, Charles Schwab, and dedicated Solo 401(k) firms make it straightforward
Start Small. You don't need $ 60,000 - start with $1,000 or whatever your budget allows
Make It Automatic: Just like payroll deductions, automate monthly contributions from your business income
Talk to a Pro: A financial advisor or tax strategist can show you how to integrate it into your overall wealth plan
Be the Exception, Not the Statistic
Most self-employed people think they'll get to retirement planning "someday." But "someday" has a way of becoming "too late." If you're serious about growing your business and securing your financial future, the Solo 401(k) is not optional; it's essential. So don't be part of the 97%. Be the self-employed success story who saw the opportunity, took action, and built a retirement plan to match the hustle.
Visit www.survival401k.com for more information!