Best Solo 401K, also known as one-participant 401(k)s, are retirement savings plans designed for self-employed individuals and business owners with no full-time employees other than themselves and their spouses. They offer a number of advantages over other retirement savings plans, such as higher contribution limits and more flexibility in investment choices.
If you are a self-employed individual or business owner considering opening a solo 401(k), it is important to compare the different options available to you. There are a number of different providers that offer solo 401(k)s, and they each have their own set of fees, features, and benefits.
Here is a comparison of the best solo 401K options for 2023:
| Provider | Fees | Investment options | Customer support | Overall rating |
| Fidelity | Low | Wide range of investment options, including stocks, ETFs, mutual funds, options, bonds, and CDs. | 24/7 customer support | Best overall |
| Vanguard | Low | Wide range of investment options, including low-cost index funds. | 24/7 customer support | Best for low fees |
| Charles Schwab | Low | Wide range of investment options, including no-fee index funds. | 24/7 customer support | Best for account features |
| TD Ameritrade | Low | Wide range of investment options, including access to fractional shares and margin trading. | 24/7 customer support | Best for customization |
| E*TRADE | Low | Wide range of investment options, including access to research tools and trading platforms. | 24/7 customer support | Best for research and trading tools |
Fees
All of the providers listed above offer low fees for their best solo 401K plans. However, it is important to compare the specific fees charged by each provider before making a decision. Some providers charge account setup fees, annual maintenance fees, and investment fees. Others may charge fees for specific services, such as rollovers or loans.
Investment options
All of the providers listed above offer a wide range of investment options for their best solo 401 K plans. However, there are some differences in the specific investment options offered by each provider. For example, Fidelity offers a wider range of stock trading options than Vanguard. Charles Schwab offers a wider range of no-fee index funds than TD Ameritrade or E*TRADE.
Customer support
All of the providers listed above offer 24/7 customer support for their best solo 401K plans. This is important in case you have any questions or problems with your plan.
Overall rating
All of the providers listed above are excellent choices for solo 401(k)s. However, the best provider for you will depend on your individual needs and preferences. Consider the factors listed above when making your decision.
Additional factors to consider when choosing a solo 401(k) provider:
- Rollovers: If you have existing Retirement Savings in another plan, such as a traditional IRA or 401(k), you may want to consider rolling over those funds into your solo 401(k). Not all providers allow rollovers, so be sure to check with the provider you are considering before opening a plan.
- Loans: Some solo 401(k) providers allow you to borrow money from your plan. This can be a helpful option if you need to cover an unexpected expense. However, it is important to note that loans from your retirement savings plan can reduce your retirement savings and could have tax implications.
- Ease of use: Some solo 401(k) providers have more user-friendly websites and mobile apps than others. This is an important consideration if you plan on managing your plan yourself.
Solo 401(k)s are a great way for self-employed individuals and business owners to save for retirement. By comparing the different options available, you can find the best solo 401(k) provider for your needs.
Here are some additional tips for choosing a best solo 401K provider:
- Read reviews: Read online reviews of different solo 401(k) providers to get an idea of what other customers have experienced.
- Ask for recommendations: Ask other self-employed individuals and business owners for recommendations for solo 401(k) providers.
- Contact customer service: Once you have narrowed down your choices, contact customer service for each provider to ask questions and get more information.
Choosing the best solo 401(k) provider for you:
The best solo 401(k) provider for you will depend on your individual needs and preferences. Consider the factors listed above when making your decision.
If you are not sure which provider is right for you, you may want to consider working with a financial advisor. A financial advisor can help you compare different providers and choose the one that is best for your needs.
Conclusion
Solo 401(k)s are a great way for self-employed individuals and business owners to save for retirement. By taking the time to compare different providers and choose the one that is right for you, you can maximize your retirement savings potential.
