Solo 401(k)

Definition

A Solo 401(k), also called an Individual 401(k), is a retirement plan available to self-employed individuals with no full-time employees other than a spouse. It allows both employee and employer contribution components, often enabling higher total annual contributions than a SEP-IRA at the same income level. Participants can also make Roth contributions and take loans from the account, features not available with a SEP-IRA.