What is Solo 401(k)?
Definition A solo 401(k) is a retirement plan for self-employed individuals and owner-only businesses with no employees other than a spouse. The owner can contribute both as the employee and as the employer, allowing much larger total contributions than most other self-employed plans. It offers traditional and Roth options and follows annual contribution limits.
It lets successful solo business owners shelter a large amount of income for retirement, making it a powerful planning tool for high-earning freelancers.