Best Solo 401(k) Companies

Fidelity self-employed 401(k) accounts are a great choice for fee-conscious investors, earning our top overall pick. The Fidelity solo 401(k) account charges no opening or closing costs and no annual maintenance fees. Customers can invest in stocks, ETFs, and over 3,300 mutual funds with no trading commissions. That means many small business owners could use this account without ever paying any fees to Fidelity. If you need help placing orders, however, the $32.95 broker-assisted trade fee may be an impediment.

Fidelity supports stocks (including fractional shares), ETFs, mutual funds, options, bonds, and CDs. Among its mutual fund choices are four broad index funds with no expense ratio and no minimum investment. In some cases, Fidelity’s own index funds undercut low-cost competitors like Vanguard. This further demonstrates why Fidelity is a good choice for investors looking to keep costs low.

If you want to level up your investment plan, you can tap into retirement calculators, apps, and education resources to help you improve your retirement savings and investment strategy. The only downsides are some inconveniences, like the lack of an option to contribute electronically and tools that lag some competitors for active trading. We still feel the positives far outweigh the negatives in making this our overall best pick. 

Read our full Fidelity review.

Charles Schwab is our top choice for low fees in a solo 401(k) plan. Schwab’s version charges no recurring fees and no setup fees. It offers commission-free trades for all stocks and ETFs as well as over 4,000 no-transaction-fee funds on the Schwab OneSource funds list. While Schwab offers excellent customer service, be aware that automated phone trades cost $5 and broker-assisted trades cost $25 each. However, many customers could use this account without paying any fees.

Schwab investors can tap into stock (including fractional shares), ETFs, mutual funds, bonds, options, and futures, among other investments. If you don’t want to make those choices yourself, you can opt in to add Schwab Intelligent Portfolios to your account if you have $5,000 or more to invest. This is a fee-free robo-advisor that picks a portfolio of low-cost ETFs for you based on your investment goals and preferences. Those with at least $25,000 can use Schwab Intelligent Portfolios with a human investment advisor for an additional fee.

Schwab’s solo 401(k) account doesn’t offer 401(k) loans. Its active investment platform may not satiate all expert investors, and its active charting and analysis tools lag behind some other brokerage platforms for active traders. However, the pending integration of TD Ameritrade will bring the coveted thinkorswim platform under the Schwab umbrella, which is something active traders at Schwab can look forward to.

Read our full Charles Schwab review.

E*TRADE has a long history of supporting online investors, with its first online trade placed in 1983. It is now a subsidiary of Morgan Stanley after an acquisition that closed in October 2020. At E*TRADE, you can choose between traditional and Roth individual 401(k) plans, which allows you to choose between pre-tax and post-tax contributions. You can also take a 401(k) loan from an individual 401(k) account at E*TRADE.

There are no listed fees to open or keep a solo 401(k) account at E*TRADE. Stock and ETF trades are commission free. The brokerage also supports over 4,400 mutual funds on its no-load, no-transaction-fee list. E*TRADE supports options, futures, and fixed-income bonds and CDs as well.

E*TRADE has a strong reputation for supporting active online traders, though you can invest completely hands-off using its managed portfolio product for an added fee. Experienced traders may prefer using the active Power E*TRADE platform, also available for mobile, as an upgrade to the regular web experience. As a large discount brokerage, it can handle most typical investor needs. It wins in this category thanks to its support for Roth contributions and 401(k) loans.

Read our full E*TRADE review.

If you’re looking to stick with a well-respected list of mutual funds from Vanguard, choose the Vanguard Individual 401(k). The account doesn’t have an annual fee on its own for accounts with at least $50,000 in Vanguard funds. It charges a $20 annual fee below that balance plus a $20 annual fee for each Vanguard fund held in the account. Depending on how you invest, this fee can add up fast and could be a reason to consider buying those Vanguard funds elsewhere. You can also trade stocks and ETFs with no commission, in addition to options and fixed-income investments.

However, that fee could be worthwhile to some investors who want to keep a small number of high-quality Vanguard funds in their portfolios. Vanguard offers 267 of its own mutual funds and 82 ETFs. The average Vanguard expense ratio (what you’re charged for owning a fund) is 0.10% for mutual funds compared to an industry average of 0.55%. For ETFs, the average is an even lower 0.06% compared to an industry average of 0.24%, at least according to Vanguard.

Vanguard’s founder, the late John Bogle, is credited as a pioneer in index investing, bringing the first index fund to market in 1976. Vanguard remains a leader in investment funds as the second-largest asset manager in the world with about $7.2 trillion under management.

Read our full Vanguard review.

TD Ameritrade is another renowned discount brokerage and our choice as best for active traders. It offers an individual 401(k) account with no recurring fees and commission-free stock and ETF trades. Its standout feature for active traders, though, is the thinkorswim active trading platform, which is available on desktop, mobile, and the web.

Before diving into other details, it’s important to note that this brokerage has been acquired by Charles Schwab. TD Ameritrade accounts will become Schwab accounts at some point in the future. However, as you can see from its review on this list, we’re fans of Schwab as well and look forward to seeing the combined capabilities once the integration is complete.

Thinkorswim is best used on a desktop, though the mobile version is also quite good. The desktop version is a professional-style platform that includes advanced trading tools, advanced charting, and in-app chat support so you can better learn the platform and refine your strategy. While making your decision, you can test it out with a $100,000 paper money (play money) portfolio risk-free. If you’re okay with the future transition to Charles Schwab, TD Ameritrade’s powerful platforms, notably charting and analysis tools, make it a solid choice for active traders.

Read our full TD Ameritrade review.

If you don’t want the limitations of traditional financial markets, you may want to consider Rocket Dollar. Instead of stocks, ETFs, mutual funds, and bonds, Rocket Dollar accounts give you the control to buy any asset with your solo 401(k) that the IRS allows. That can include rental properties, fix-and-flip real estate, or land that you think will appreciate in value. You can invest outside of real estate as well, such as private investments in a startup or precious metals; however, Rocket Dollar's flexibility makes it the solo 401(k) that's best for real estate.

Rocket Dollar offers two account levels. The Silver account charges $15 per month plus a $360 setup fee. It includes the formation of a new LLC to hold your investments, online tools, and online support. The higher-end Gold account costs $30 per month after a $600 setup fee and includes additional features such as free wire transfers, priority support, a physical checkbook and debit card, a custom name for your LLC, and tax form filing.

This account doesn’t include a regular stock market investment platform and has regular monthly fees, so it isn’t right for everyone. However, for investors who want granular control over non-traditional investments for retirement, Rocket Dollar’s support for real estate purchases with an account checkbook could make it the right choice for your investments.