Best Solo 401(k) Providers Compared

You’ve decided a Solo 401(k) is right for you. Now comes the practical question: where do you open one?

The good news is that the big brokerages offer Solo 401(k) plans with no setup or annual fees. The tricky part is that their features are not identical. Some support Roth contributions, some allow plan loans, and some are simply easier to open. Features also change over time, so the details matter more than the brand name.

This guide explains what to compare, gives you an overview of the most common providers, and helps you choose one that matches how you actually work.

Who Can Open a Solo 401(k)?

A Solo 401(k) is for self-employed people with no employees other than a spouse. You can be a sole proprietor, a single-member LLC owner or a freelancer with 1099 income. You need real self-employment income to contribute.

If you’re still deciding between plan types, start with our comparison of the SEP IRA vs. Solo 401(k). If you’re not yet saving at all, our guide on how to start saving for retirement as a freelancer is a good first step.

What to Compare Before You Choose

Most providers look similar on the surface. These are the details that actually change your experience:

1. Fees. Look at setup fees, annual fees, and the costs of the funds you’ll invest in. Fund expense ratios usually matter more than account fees over time.
2. Roth contributions. Some plans let you make your employee deferrals as Roth (after-tax) contributions. Others only allow pre-tax contributions.
3. Plan loans. Some plans allow you to borrow from your balance. Many freelancers never use this, but it can be a safety net.
4. Investment choices. Do you want index funds, ETFs and individual stocks, or only a short list of funds?
5. Setup process. Some providers let you open the plan online in minutes. Others require paper forms or a longer approval process.
6. Contribution method. Check whether you can fund the account by direct bank transfer, and how employer and employee contributions are recorded.
7. Customer support. When something goes wrong with a retirement account, you want to reach a human.

Major Brokerages: The Simple, Low-Cost Route

The largest online brokerages are the most popular starting point for freelancers. They generally advertise $0 setup and $0 annual fees for their Solo 401(k) plans, offer a wide range of index funds and ETFs, and have familiar websites and apps.

Provider	Typical account fees	Investment range	What to confirm before opening
Fidelity	$0 setup and annual fees	Broad range of funds, including low-cost index funds	Roth contributions, plan loans
Charles Schwab	$0 setup and annual fees	Broad range of funds, ETFs and stocks	Roth contributions, plan loans
E*TRADE (Morgan Stanley)	$0 setup and annual fees	Broad range of funds, ETFs and stocks	Roth contributions, plan loans

Important: Different review sites report different information about which of these providers currently support Roth contributions and loans, and providers update their plan documents from time to time. That’s why the last column says «confirm.» Before you open an account, check the provider’s current Solo 401(k) plan documents or ask their support team directly: «Does your Individual 401(k) allow Roth employee deferrals? Does it allow participant loans?»

Fidelity

Fidelity is frequently recommended for its low costs, broad selection of index funds and easy online interface. It suits freelancers who want a simple, set-it-and-forget-it plan.

Best for: beginners who want low fees and a familiar platform.

Charles Schwab

Schwab is another low-cost brokerage with a wide investment menu and strong customer service. It’s popular with people who already use Schwab for an IRA or brokerage account and would like everything in one place.

Best for: investors who like having all accounts with one company.

E*TRADE from Morgan Stanley

E*TRADE is often mentioned when freelancers want more flexibility in the features of their plan. It’s worth checking its current Roth and loan options against your needs.

Best for: freelancers who value extra plan features and are comfortable comparing details.

Self-Directed Solo 401(k) Providers

Some companies specialize in Solo 401(k) plans with more customization, such as investing in real estate or other alternative assets, or offering advanced Roth features. These providers usually charge a setup fee or monthly fee, so they only make sense if you need those extra features.

Best for: experienced investors with specific strategies. If you just want to invest in index funds, a major brokerage is usually cheaper and simpler.

Which Provider Should You Choose?

• You want the simplest, cheapest option: a major brokerage with $0 fees.
• You want Roth contributions: confirm the provider supports them before you open the account.
• You might want to borrow from your plan: confirm loans are allowed.
• You want advanced or unusual investments: consider a self-directed provider, and make sure you understand the fees and the rules.
• You’re not sure: pick a low-cost brokerage you already trust. You can usually move a plan later, though moving takes some paperwork.

Common Mistakes When Choosing a Provider

• Choosing by brand alone. Two well-known names can have different features.
• Ignoring fund fees. A «free» account can still hold expensive funds.
• Opening the account too late. To make employee deferrals for a given year, you generally need the plan set up by December 31. Recent rule changes gave some sole proprietors extra flexibility, so confirm the current deadline with your provider.
• Forgetting annual reporting. Once your plan assets pass $250,000, you generally need to file Form 5500-EZ with the IRS. Read the IRS overview of one-participant 401(k) plans for the current rules.
• Not checking who you’re dealing with. Before opening an account with a company you don’t know, check its background with FINRA BrokerCheck.

How to Open a Solo 401(k): The Basic Steps

1. Confirm you qualify (self-employment income, no employees other than a spouse).
2. Get an Employer Identification Number (EIN) if you don’t have one. Sole proprietors can often use a Social Security number, but many providers ask for an EIN.
3. Compare two or three providers using the checklist above.
4. Complete the application and adopt the plan documents.
5. Open the account and set up contributions.
6. Invest the money, since a contribution sitting in cash isn’t growing.

Frequently Asked Questions

Are Solo 401(k) accounts really free?
Many major brokerages charge no setup or annual account fees, but the funds you invest in have their own expense ratios, and self-directed providers often charge fees.

Can I have a Solo 401(k) and an IRA at the same time?
Yes. IRA contributions have their own limit ($7,500 in 2026, or $8,600 if you’re 50 or older), separate from your Solo 401(k). Roth IRA eligibility depends on your income.

What if I hire an employee later?
A Solo 401(k) is designed for owners without employees, other than a spouse. If you hire, you may need to switch to a different type of plan. A tax professional can help.

Can I move my Solo 401(k) to another provider?
Generally yes, through a rollover or transfer. Ask both providers about their process and any fees.

Final Thoughts

For most freelancers, the best Solo 401(k) provider is a low-cost brokerage with a plan that offers the features you actually need. Decide first whether Roth contributions or loans matter to you, then compare the current plan details, not just the marketing pages.

Provider features and fees change. Always verify the current details with the provider before opening an account, and confirm contribution limits at IRS.gov.

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Disclaimer: This article is for educational purposes only and is not personalized financial, tax or investment advice. It does not endorse any specific company. Consult a qualified professional about your own situation.

Last updated: September 28, 2026