Best Brokerages For A Solo 401(k) In 2025
Compare top solo 401(k) brokers with zero fees, diverse investments, and excellent support.
A solo 401(k), also known as an individual 401(k) or self-employed 401(k), is a retirement savings plan designed specifically for self-employed individuals and small business owners with no employees. This retirement vehicle offers significant tax advantages and higher contribution limits compared to traditional IRAs, making it an attractive option for entrepreneurs and freelancers looking to maximize their retirement savings.
Choosing the right brokerage to open and manage your solo 401(k) is a critical decision that can impact your long-term retirement wealth. The best brokerages combine low costs, diverse investment options, exceptional customer support, and user-friendly platforms. In this comprehensive guide, we’ll examine the top brokerages offering solo 401(k) accounts and help you determine which one aligns best with your financial goals and investment style.
How Bankrate Evaluates Solo 401(k) Brokerages
When assessing the best brokerages for solo 401(k) accounts, we consider multiple critical factors that directly impact your retirement savings experience. Our evaluation methodology ensures that only the most qualified and reliable providers make our list.
Our assessment criteria include:
– Cost Structure: We examine commissions, setup fees, ongoing account maintenance fees, and any ancillary charges that could erode your retirement savings over time.- Investment Offerings: A comprehensive selection of investment options including stocks, ETFs, bonds, mutual funds, and alternative investments provides flexibility to build a diversified portfolio aligned with your risk tolerance and time horizon.- Research and Educational Resources: Quality research tools, educational content, and investment analysis platforms help investors make informed decisions about their retirement portfolios.- Customer Support Quality: Responsive, knowledgeable customer service representatives who can answer questions about plan administration, compliance, and investment strategies are essential for a positive account experience.- Ease of Setup: The ability to establish your solo 401(k) quickly and without complicated paperwork removes barriers to retirement savings.- Platform Features: Advanced trading tools, mobile apps, and intuitive interfaces enhance the overall account management experience.
Top Solo 401(k) Brokerages For 2025
Fidelity Investments
Fidelity Investments stands out as a premier choice for solo 401(k) accounts, offering an exceptional combination of low costs, comprehensive investment options, and industry-leading customer support. Whether you’re a new business owner or an established entrepreneur, Fidelity provides the tools and resources necessary to build and maintain a robust retirement portfolio.
Key Advantages: One of Fidelity’s most compelling features is its complete elimination of setup fees and ongoing account maintenance fees. You can establish your solo 401(k) within minutes without incurring any initial charges. Once your account is active, you’ll never face annual account fees, allowing more of your money to grow tax-deferred.
Fidelity’s investment universe is remarkably expansive. You can invest in stocks with zero-commission trades, access thousands of ETFs at no transaction cost, purchase bonds, choose from tens of thousands of mutual funds (including many with no transaction fees), and explore other securities. This breadth of options ensures that you can construct a diversified portfolio tailored to your specific investment objectives and risk tolerance.
The platform supports traditional pre-tax contributions, allowing your earnings to grow tax-deferred until retirement. Fidelity’s customer support reputation is legendary in the industry. If you have questions about your account, contribution limits, investment selection, or plan administration, you can connect with knowledgeable representatives who are typically available within minutes.
Costs: $0 account setup fee and $0 ongoing fee
Charles Schwab
Charles Schwab consistently earns recognition as one of the best brokerages for retirement accounts, and its solo 401(k) offering is no exception. With a long history of innovation and customer-first principles, Schwab provides an outstanding platform for self-employed individuals seeking to maximize retirement savings.
Key Advantages: Like Fidelity, Charles Schwab charges no account setup fees and no ongoing fees, making it an extremely cost-effective choice for solo 401(k) planning. This zero-fee structure removes financial barriers to establishing and maintaining your retirement plan.
Schwab offers both traditional pre-tax and Roth 401(k) options, providing flexibility for different tax planning strategies. With a traditional solo 401(k), your contributions reduce your current taxable income. A Roth solo 401(k) allows after-tax contributions that grow tax-free, with tax-free withdrawals in retirement—a valuable benefit for those expecting higher tax brackets in retirement.
Your investment options at Schwab include stocks, ETFs, mutual funds, bonds, and additional securities. Trading costs are exceptionally competitive: zero commissions for stocks and ETFs, and free trades on many mutual funds. This favorable pricing structure means you keep more of your money working for you rather than paying intermediaries.
Schwab’s customer service ranks among the industry’s strongest. Representatives are typically knowledgeable, responsive, and available to help you navigate account questions and investment decisions.
Costs: $0 account setup fee and $0 ongoing fee
Merrill Edge
Merrill Edge presents a premium solo 401(k) option for investors who value professional guidance and curated investment strategies, though this enhanced service level comes with higher associated costs compared to some competing brokerages.
Key Advantages: Merrill Edge distinguishes itself by offering both pre-tax and Roth solo 401(k) accounts, giving you maximum flexibility in structuring your retirement savings strategy. The platform also permits solo 401(k) loan provisions, allowing you to borrow against your accumulated balance for emergency needs or business opportunities—a valuable feature not all brokerages provide.
A particularly noteworthy feature is Merrill’s offering of model portfolios constructed by Morningstar Investment Management. These professionally-designed portfolios can serve as an excellent starting point for investors who prefer a more hands-off approach rather than individually selecting each holding. The availability of individual mutual funds alongside these model portfolios ensures flexibility for both active and passive investors.
Cost Considerations: While Merrill Edge provides premium features, potential account holders should understand that costs are higher than zero-fee competitors. The brokerage charges setup fees, monthly maintenance costs, and asset-based fees. For investors who value professional portfolio construction and enhanced guidance, these costs may represent worthwhile value. However, cost-conscious investors may find more economical alternatives among competing brokerages.
E-Trade
E-Trade offers a compelling solo 401(k) solution that balances affordability with comprehensive functionality, making it an excellent choice for self-employed individuals seeking low costs without sacrificing investment flexibility or important features.
Key Advantages: E-Trade eliminates setup barriers by charging zero account setup fees and zero ongoing maintenance fees. This cost structure makes it simple and affordable to establish your solo 401(k) and maintain it long-term without unexpected expenses.
The platform supports both traditional pre-tax and Roth solo 401(k) accounts, accommodating various tax planning strategies. A particularly valuable feature is E-Trade’s allowance for solo 401(k) loans, providing access to your accumulated funds when life circumstances warrant emergency access or business opportunities emerge.
Investment options are comprehensive: you can trade stocks, ETFs, and mutual funds with zero commissions; trade bonds; and access options for more sophisticated investors. E-Trade offers no-commission trading on stocks, ETFs, and mutual funds, ensuring that trading costs won’t erode your portfolio. The platform also provides a large selection of no-fee mutual funds, reducing ongoing costs further.
E-Trade’s combination of low costs, diverse investment choices, and important features like loan provisions creates a well-rounded platform suitable for various investor types and experience levels.
Costs: $0 account setup fee and $0 ongoing fee
Vanguard
Vanguard has earned an exceptional reputation as an investor-focused company, and this philosophy clearly influences its solo 401(k) offering. For investors specifically interested in Vanguard’s renowned low-cost mutual fund lineup, Vanguard represents an outstanding choice despite some limitations compared to full-service brokerages.
Key Advantages: Vanguard charges no setup fees to open your solo 401(k), eliminating barriers to plan establishment. However, Vanguard implements a per-fund holding fee of $20 annually. This fee structure may seem unattractive initially, but Vanguard waives all per-fund fees for accounts with more than $50,000 in total Vanguard assets across all Vanguard accounts, making the fee moot for many investors with significant Vanguard holdings.
Vanguard’s investment universe is specifically focused on approximately 100 of its in-house mutual funds, which rank among the cheapest available in the marketplace. These actively-managed and passively-managed funds provide excellent value through low expense ratios. If your investment philosophy aligns with Vanguard’s fund offerings, this focused selection combined with ultra-low costs creates tremendous long-term value.
You can contribute on either a pre-tax basis or an after-tax basis, providing tax planning flexibility. Vanguard’s reputation for putting investors first translates into quality fund management and customer-focused policies.
Important Limitations: Vanguard’s approach differs from full-service brokerages in important ways. You cannot directly purchase individual stocks, ETFs, or bonds—investments are limited to its mutual fund lineup. Additionally, Vanguard does not allow loans against solo 401(k) balances, which may be a disadvantage for those valuing loan flexibility as an emergency resource or business opportunity funding mechanism.
Costs: $0 setup fee and $20 per fund (fee waived with $50,000+ in Vanguard assets)
Solo 401(k) Comparison Table
| Broker | Setup Fee | Annual Fee | Roth Option | Loan Feature | Stock Trading | Mutual Funds |
|---|---|---|---|---|---|---|
| Fidelity Investments | $0 | $0 | No | No | $0 Commission | Thousands, many no-fee |
| Charles Schwab | $0 | $0 | Yes | No | $0 Commission | Extensive selection, many free |
| Merrill Edge | Fee applies | Fee applies | Yes | Yes | Varies | Strong selection, model portfolios |
| E-Trade | $0 | $0 | Yes | Yes | $0 Commission | Large selection, many no-fee |
| Vanguard | $0 | $20/fund (waivable) | Yes | No | Not available | ~100 in-house funds |
Choosing The Right Solo 401(k) Broker For Your Needs
Selecting the best solo 401(k) brokerage ultimately depends on your individual circumstances, investment preferences, and priorities. Here are some considerations to guide your decision:
For Cost-Conscious Investors: If minimizing fees is your top priority, Fidelity, Charles Schwab, and E-Trade each offer zero setup and annual fees. These three brokerages provide exceptional value while maintaining comprehensive investment options and strong customer support.
For Maximum Flexibility: If you value the ability to take loans from your solo 401(k) and want both traditional and Roth options, Charles Schwab, E-Trade, and Merrill Edge provide these features. E-Trade and Charles Schwab offer this flexibility without charging setup or annual fees.
For Hands-Off Investors: If you prefer professional guidance and don’t want to select individual investments, Merrill Edge’s model portfolios and Vanguard’s focused mutual fund selection appeal to passive investors willing to accept higher fees for simplified portfolio management.
For Buy-and-Hold Investors: If your strategy involves purchasing low-cost index funds and holding them long-term, Vanguard’s exceptional fund quality and ultra-low expense ratios may justify the per-fund fees, especially if your account exceeds $50,000.
For Active Traders: If you actively trade stocks, ETFs, and other securities, Fidelity and Charles Schwab’s zero-commission trading, combined with zero account fees, make them ideal choices that won’t penalize frequent trading activity.
Getting Started With Your Solo 401(k)
Once you’ve selected your preferred brokerage, opening a solo 401(k) is typically straightforward. Most brokerages allow you to complete the entire process online within minutes. You’ll generally need to provide personal information, business details, tax identification numbers, and signature authorization. After submission, your account is usually activated immediately or within one business day.
Before making your first investment decision, take time to understand your contribution limits for the current year. Solo 401(k) contribution limits are significantly higher than traditional IRA limits, allowing you to accumulate retirement savings more rapidly. Consider consulting with a tax professional or financial advisor to optimize your contribution strategy and ensure compliance with IRS regulations.
Frequently Asked Questions About Solo 401(k) Brokerages
Q: What is the primary difference between a solo 401(k) and a traditional IRA?
A: Solo 401(k) plans offer significantly higher annual contribution limits compared to IRAs. In 2025, you can contribute up to $69,500 to a solo 401(k) (or $77,000 if age 50 or older), compared to $7,000 for traditional IRAs ($8,000 if age 50 or older). Solo 401(k)s also permit loans against your balance, which IRAs do not allow.
Q: Do I need employees to open a solo 401(k)?
A: No. Solo 401(k)s are specifically designed for self-employed individuals and business owners with no employees (except a spouse). If you hire employees, you’ll need to establish a different retirement plan type.
Q: Can I have both a traditional and Roth solo 401(k)?
A: Some brokerages, including Charles Schwab, Vanguard, and E-Trade, offer both traditional and Roth 401(k) options. You may be able to maintain both account types simultaneously, though combined contributions cannot exceed annual limits.
Q: Are there investment restrictions within a solo 401(k)?
A: Most solo 401(k) accounts allow investments in stocks, bonds, mutual funds, ETFs, and similar securities. However, solo 401(k)s cannot invest in certain prohibited assets such as collectibles, life insurance contracts, and certain types of real estate. Consult your brokerage or a tax professional for specific restrictions.
Q: When can I take distributions from my solo 401(k)?
A: Generally, you can withdraw funds after age 59½ without penalties. You must also begin taking required minimum distributions (RMDs) at age 73. However, some brokerages permit loans against your balance, providing access to funds before retirement age for eligible reasons.
Q: Do all solo 401(k) brokerages charge the same fees?
A: No. Fee structures vary significantly. Fidelity, Charles Schwab, and E-Trade charge no setup or annual fees. Merrill Edge charges higher fees. Vanguard charges per-fund fees but waives them for larger accounts. Carefully compare fee structures among your finalists.
Q: Can I roll an existing IRA or 401(k) into a solo 401(k)?
A: Yes. Most brokerages accept rollovers from traditional IRAs and existing employer 401(k) plans. This consolidation can simplify account management and may provide access to better investment options or loan features.
References
- Best Brokerages For A Solo 401(k) In 2025 — Bankrate. 2025. https://www.bankrate.com/retirement/best-brokerages-solo-401k/
- Best places to roll over your 401(k) in 2025 — Bankrate. 2025. https://www.bankrate.com/retirement/best-places-to-rollover-401k/
- Best Solo 401k Brokerages in 2025 — Carry. 2025. https://carry.com/learn/best-solo-401k-brokerages
- Best Retirement Plans For The Self-Employed — Bankrate. 2025. https://www.bankrate.com/retirement/best-retirement-plans-for-the-self-employed/
Similar Articles
Read full bio of Sneha Tete
