What Are the Advantages of Enrolling in Solo 401(k) Plans?

Every working person has a unique way of looking at their future. No matter the job sector or employment type, all working individuals have a common goal of earning enough to have a comfortable life after retirement. Depending on their preferences, they can save money on their own and put a set amount aside as a nest egg for the future. Alternatively, they can enroll in a 401(k) plan that guarantees a secure retirement besides providing bonuses like tax benefits, diversification of personal investments, financial flexibility, and more.

When you search for a retirement plan, you can choose between multiple options that provide different alternatives to managing your retirement funds. Some of the most popular types include single, reserve, saver, and custom 401(k) plans; the specifics of each 401(k) plan differ according to your type of employment, annual income, tax eligibility, and more. The following will take a closer look at Solo 401(k) plans which has become one of the most popular options for individual retirement plans.

About Solo 401(k) Plans

A Solo 401(k) is the ideal retirement plan for individuals who are self-employed. If you are an entrepreneur, freelancer, individual small business owner, or independent contractor, you can choose a Solo 401(k) to start building your retirement savings today. Contrary to other options for 401(k) plans, whereby an employer or company chooses a plan for their employees based on their business needs, a Solo 401(k) is free from any restrictions posed by this arrangement. 

By virtue of being an individual worker, you can contribute to a Solo 401(k) plan both as an employer and employee, which can add up to $61,000 in contributions before tax. Some plans have an added Roth 401(k) option that allows you to make contributions after tax, such that you remain tax-free post-retirement. The average age of retirement used to determine this distinction is 59.5 years, as delineated by the IRS (Internal Revenue Service) in the United States.

Benefits of Choosing a Solo 401(k) 

Affordable Cost

A Solo 401(k) is one of the few individual plans that offer fewer trading costs and AUM (Assets Under Management) fees compared to other 401(k) plans. Additionally, the Ubiquity Solo 401(k) plan offers a flat-fee model that has low associated costs, meaning that you can save more by spending less.

Hassle-Free Setup

Solo 401(k) plans have a hassle-free setup that takes less than 15 minutes to get started. You can immediately start investing your funds through a custodian once your plan is ready, and online tools make it very convenient to manage your funds and investments.


With a Ubiquity Solo 401(k), you can not only make Roth contributions, unlike most single 401(k) plans, but also take loans and access a wide range of sustainable and diverse investment options. You can also choose between different families of funds and have complete control over your financials.


A Solo 401(k) is the perfect retirement plan for self-employed individuals who want a hassle-free way to start building their retirement funds. With a high degree of flexibility, affordable plan costs, and diverse investment options, you can start saving for your future today.

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