How to Set Up a Solo 401(k) in 2026
If you’re working for yourself, a Solo 401(k) is a popular retirement savings option that you might consider. These plans are designed for self-employed individuals and are typically easy to set up. If you’re interested in enrolling in a Solo 401(k) in 2026, ePlan Services is here to help you understand that process.
This article is part of our ongoing series about retirement savings for self-employed individuals. Visit our Learn page to read more articles on this topic and follow us on LinkedIn to never miss a new post.
What is a solo 401(k)?
A solo 401(k), also called an individual 401(k) or one-participant 401(k), is a retirement plan for people who are self-employed and their spouses. To be eligible for a solo 401(k), you must earn your income as a sole proprietor or own a small business without employees.
In 2026, the contribution limit is $24,500. Individuals aged 50-59 and 64+ can make catch-up contributions of up to $8,000 per year. For those between the ages of 60 and 63, the catch-up contribution limit increases to $11,250.
What are the benefits of opening a solo 401(k)?
If you open a solo 401(k), you can make tax-deductible contributions to your account. You also can contribute as both the employee and the employer, making employer contributions of up to 25% of your total compensation. You’ll have the option to make traditional or Roth contributions, as well as the option to take a loan out of your account when needed.
Solo 401(k)s are often easier to set up than some other retirement account options, requiring minimal paperwork. These accounts are often exempt from non-discrimination testing as well.
How do you set up a solo 401(k)?
Once you’ve chosen a reputable 401(k) provider, opening a solo 401(k) requires a few simple steps
Check your requirements and eligibility
The plan provider you select should be able to confirm your eligibility for a Solo 401(k). They will also walk you through the plan requirements. At ePlan Services, our team can check whether you and/or your spouse meet the requirements to open and enroll in a solo 401(k).
Fill your all the necessary documents
Since a Solo 401(k) is designed for entrepreneurs and self-employed individuals, it typically requires less paperwork than larger 401(k) plans. The ePlan Services team can walk you through our simple plan establishment process.
Choose your investments and fund your plan
Choosing investments for your Solo 401(k) is a key step towards long term growth.. Unsure which funds to choose? A trusted financial advisor can recommend investments that fit your unique financial needs and goals.
Use the tools available to you
Using the tools that come with your 401(k) plan is a great way to track your progress and plan for your future. ePlan Services offers intuitive plan management tools to keep track of your 401(k), manage transfers, loans and distributions, control your investments, and more.
Start saving today
An ePlan Services Solo 401(k) is a streamlined and scalable option for self-employed individuals. We provide the tools and support you need to save for your future, so you can focus on growing your business. Interested in getting started? Contact our team today.
