The most powerful retirement account for self-employed and 1099 earners. Employee + employer contributions. Mega backdoor Roth optional.
A Solo 401(k) — also called an Individual 401(k) or Self-Employed 401(k) — is a retirement plan for business owners with no employees other than a spouse. It works like a regular 401(k), but you contribute as both the employee and the employer.
That dual-contribution structure is why the limits are so high. In 2026:
Some providers also support a mega backdoor Roth option — after-tax contributions that convert to Roth, potentially pushing total tax-advantaged savings even higher.
At a 37% marginal rate, a $70,000 Solo 401(k) contribution reduces your federal tax bill by roughly $25,900 in the year of contribution. That's money growing tax-deferred (or tax-free if Roth) instead of going to the IRS.
Compare this to a SEP IRA, which only allows employer contributions (no employee elective deferrals). For many self-employed earners, the Solo 401(k) allows $20,000–$30,000 more in annual contributions than a SEP at the same income level.
If you have W-2 employees other than your spouse, you typically need a different plan structure. But for solo operators and couples running a business together, this is the most efficient vehicle available.
Nabers Group specializes in self-directed Solo 401(k) plans with checkbook control, Roth options, and mega backdoor Roth support.
Open a Solo 401(k) →Affiliate link. We may earn a commission if you open an account — at no additional cost to you.
Many Solo 401(k) holders also own rental property. A cost segregation study accelerates depreciation into Year 1 — creating losses that offset active income alongside your Solo 401(k) deduction. Studies start at $495.
Both allow employer contributions, but a Solo 401(k) also allows employee contributions ($23,500 in 2026). This means higher total contributions at lower income levels. A Solo 401(k) also allows Roth contributions and loans against the balance — SEP IRAs do not.
Yes, if you also have self-employment income (1099, side business, freelancing). Your Solo 401(k) covers the self-employment income only. The employee contribution limit ($23,500) is shared across all employer plans, but the employer contribution is separate.
Some Solo 401(k) providers allow after-tax contributions above the standard limits, which can then be converted to Roth. This can push total contributions well beyond $70,000 in tax-advantaged space. Not all providers support this — Nabers Group is one that does.
Up to $70,000 ($77,500 if age 50+). This includes $23,500 as employee contribution plus up to 25% of net self-employment income as employer contribution. The exact employer amount depends on your business structure and net earnings.
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