Fit
Who it is for
- Self-employed people and 1099 professionals with earned business income.
- Real-estate agents, brokers and investors running their own business.
- Consultants, independent contractors and owner-only service businesses.
- Owner-only businesses where a spouse also works in the business.
Eligibility is subject to review. Employee, controlled-group and affiliated-service-group facts can change the answer.
You are both the employee and the employer
In a one-participant plan the owner may contribute as the employee, through elective deferrals, and as the employer, through a profit-sharing type contribution. Both parts count toward one combined annual additions limit, and the employer portion is calculated from your compensation as defined by the plan and IRS rules.
2026 figures
How the 2026 limits fit together
Your own limit depends on age, compensation and the plan's calculations. These are ceilings, not targets.
Contribution breakdown
- Employee elective deferrals$24,500
Shared across all of your 401(k)/403(b) plans.
- Employer contribution (balance of the limit)up to $72,000 combined
Employee plus employer annual additions are capped at $72,000 for 2026, before catch-up.
- Catch-up, eligible participants age 50+$8,000
- Higher catch-up, eligible participants ages 60–63$11,250
The ages 60–63 amount applies instead of, not in addition to, the general age-50 catch-up for those who qualify.
Last reviewed September 2026. Figures are from the IRS and depend on your individual facts. See the IRS 2026 limits.
Traditional and Roth features
Plans may be written to allow pre-tax deferrals, designated Roth deferrals or both. Roth deferrals are made after tax and are subject to their own distribution rules. Which mix suits you is a tax question for your adviser.
Participant loans
Where the plan document includes a loan provision, loans are generally limited to the lesser of $50,000 or 50% of the vested account balance, with a written note, interest and a repayment schedule. Missed payments can create a taxable deemed distribution.
Eligible rollovers
Subject to plan terms, a Solo 401(k) may accept rollovers from:
- A traditional IRA or SEP IRA
- A SIMPLE IRA after the required participation period
- A former employer's 401(k), 403(b) or governmental 457(b) plan
- A Roth IRA cannot be rolled into a 401(k) plan.
Timing depends on the releasing institution. We provide instructions and coordination help; we do not move your money for you.
Alternative investments
Where the plan document permits and the bank or custodian supports it, plan assets may include real estate, private lending, private companies and funds, precious metals, conventional market assets and, in some cases, digital assets.
Prohibited-transaction rules restrict dealings between the plan and disqualified persons, including you, close family members and entities you control. A prohibited transaction can disqualify the plan and create taxes and penalties. Review any planned transaction with your own tax or legal adviser before it happens. All investing involves risk, including loss of principal.
Employees and related businesses
A one-participant plan is designed for a business with no eligible common-law employees other than the owner and a spouse working in the business. Controlled- group and affiliated-service-group rules can combine separate companies you own or control, which may bring their employees into the coverage picture. If you own part of another business, or expect to hire, that should be reviewed first.
Form 5500-EZ basics
A one-participant plan generally must file Form 5500-EZ once plan assets reach $250,000 or more at the end of the plan year, and a final return can be required when the plan is terminated. The $200 annual support fee includes assistance preparing Form 5500-EZ when required and Form 1099-R when applicable, at no additional charge. Not every plan needs either form. The plan sponsor or payer remains responsible for providing accurate records and information, reviewing completed forms, and timely filing or furnishing them as applicable. Survival 401K provides preparation assistance, not a filing service or a guarantee of acceptance or outcome. State filing fees are not included, and we do not provide tax or legal advice.
Educational comparison
Solo 401(k), SEP IRA, SIMPLE IRA and IRA
Different structures suit different businesses. This table is educational and does not identify a best choice for you.
| Feature | Solo 401(k) | SEP IRA | SIMPLE IRA | Traditional / Roth IRA |
|---|---|---|---|---|
| May fit | Owner-only businesses with no eligible employees | Businesses that want employer-only contributions | Small employers with staff who want a simple plan | Individuals saving outside a business plan |
| 2026 contribution ceiling | Up to $72,000 in annual additions, before catch-up | Up to $72,000, employer contributions only | $17,600 employee deferral plus required employer contributions | $7,500 |
| Employee deferrals | Yes, up to $24,500 | No | Yes | Not applicable |
| Roth feature | Available where the plan document provides for it | Available in some arrangements | Available in some arrangements | Roth IRA, subject to income limits |
| Participant loans | Permitted where the plan includes a loan provision | No | No | No |
| Alternative assets | Possible when the plan and institution allow | Possible with a self-directed custodian | Possible with a self-directed custodian | Possible with a self-directed custodian |
| Annual filing | Form 5500-EZ assistance included; filing by sponsor | Generally none for the employer | Generally none for the employer | None |
Figures are 2026 IRS amounts and are subject to eligibility, compensation and plan terms. Source: IRS.
Last reviewed September 2026. Figures are from the IRS and depend on your individual facts. See the IRS 2026 limits.
Engagement
Exactly what our setup includes
Included
- Customized plan document package
- Traditional and Roth provisions where selected
- Participant-loan provision where selected
- Rollover and account-opening instructions
- Initial implementation meeting
- Access to ongoing support, including applicable form-preparation assistance
Not included
- Investment selection or recommendations
- Legal, tax or accounting advice
- Custody of plan assets
- Tax-return preparation, filing services or state filing fees
- Any guarantee of tax or investment outcomes
Solo 401(k) Plan Setup
Starting at $1,200 one time
Plan document package, implementation assistance and your initial working session.
Ongoing Annual Support
$200 per year
Continued administrative support, plan-document upkeep, educational guidance and applicable form-preparation assistance.
Plan Reinstatement
$250 when applicable
For resuming service after annual support has lapsed. Not a charge for routine restatements provided during active support.
Prices shown are published Survival 401K service fees. State and government filing fees, registered-agent renewals, custodian, bank, payroll, legal, CPA, investment and lender charges are separate where applicable, and government fees can change.
Survival 401K provides plan-document setup, implementation assistance, education and ongoing administrative support. We are not a bank, custodian, registered investment adviser, law firm, CPA firm, lender or fiduciary.
Want to estimate your numbers first? Try the Solo 401(k) Contribution Calculator.
Further reading
Articles on how the plan works in practice
Solo 401(k) basics
Start here if you are working out what the plan is and whether you qualify.
Contribution limits and planning
How much can go in, when it has to go in, and how it affects your tax picture.
Trustee and plan administrator responsibilities
What you are signing up for once the plan exists, including filings.