Our Criteria
We evaluated solo 401(k) accounts from brokerage firms available in all 50 states, ultimately only featuring those that fit our strict criteria. To be included on this list, providers must:
- Have at least $1 trillion in assets under management
- Offer a solo 401(k) account with no setup or maintenance fees
Editor’s Choice: Best Overall: Charles Schwab
Charles Schwab
Our Take
Charles Schwab’s reputation for stellar customer satisfaction and its lack of fees, commissions or account minimums helped it take the top spot for solo 401(k) providers.
Pros
- #7 in IBD’s Most Trusted Financial Companies
- Award-winning 24/7 customer service support
- Over 300 physical branches
- No fees for monthly service, account opening or maintenance
- No account minimum
Cons
- Doesn’t offer Roth 401(k)s
- Doesn’t allow 401(k) loans
- Fees for non-Schwab fund trading
More Insights
The individual 401(k) plan from Charles Schwab features no monthly fees and no commission for online trades of stocks or Schwab exchange-traded funds (ETFs). Although it doesn’t offer a Roth 401(k) option, investors have a wealth of investment options to build their traditional 401(k) portfolios, including over 2,000 ETFs and 7,000 mutual funds.
Charles Schwab’s dedication to putting customers first has earned them a reputation for customer satisfaction. Schwab scored the second highest in the 2024 J.D. Power Self-Directed Investor Satisfaction Study and placed seventh in Investor’s Business Daily’s ranking of the Most Trusted Financial Companies. The company provides 24/7 customer service, and their StreetSmart Edge® online trading platform makes managing your portfolio easy and accessible.
Best for Beginners: Fidelity Investments
Fidelity Investments
Our Take
Fidelity’s wealth of online resources and strong customer support can help beginner investors manage their solo 401(k) with confidence.
Pros
- #1 in IBD’s Most Trusted Financial Companies
- No opening cost, closing cost or annual fees
- Over 10,000 funds to choose from
- Robust tools and resources including online courses for investing beginners
Cons
- No Roth 401(k) offering
- Doesn’t support 401(k) loans
More Insights
Those new to managing their own 401(k) might prefer the extensive tools and resources provided by Fidelity Investments. The brokerage’s comprehensive resources for customers include withdrawal calculators, retirement calculators that factor in Social Security distributions, chatbot support, reporting features and the Learning Center, where beginners can access four-week virtual courses to improve their trading skills.
On top of these features, Fidelity’s self-employed 401(k) has no opening or closing costs or annual fees, and investors pay no commission for online trading of domestic stocks, ETFs and options. You can build your portfolio with investment choices including stocks, bonds, ETFs, CDs and over 10,000 mutual funds.
Best for Advanced Investors: E*TRADE
E*TRADE from Morgan Stanley
Our Take
Solo 401(k) investors who value having lots of investment options might prefer E*TRADE’s thousands of stock, bond, mutual fund and CD offerings.
Pros
- Rated Best Trading Technology by Benzinga’s 2023 Global Fintech Awards
- No account fees and no commissions on stock, ETF or mutual funds
- Offers both Roth and traditional 401(k)s
- Supports 401(k) loans
- Over 6,500 mutual funds and 50,000+ bond and CD offerings
Cons
- Lower-than-average customer satisfaction
- $1 per bond charge for online secondary market trades ($10 minimum)
- $0.50 to $0.65 charge per contract for options trading
More Insights
E*TRADE offers a wealth of investment choices and competitive pricing, making it ideal for those who want to more actively manage their portfolios. “With E*TRADE, I would say there’s the ability to be self-directed,” Marguerita Cheng, a Retirement Income Certified Professional® and CEO of Blue Ocean Global Wealth, told Annuity.org. “You’re not restricted to just mutual funds, you can get stocks and ETFs.”
Investors who choose E*TRADE won’t owe any account fees and can choose to open a Roth or traditional solo 401(k). Most trades won’t incur any commissions, and E*TRADE is transparent about which options trades do charge fees. E*TRADE also allows investors to take a loan against their 401(k).
Understanding Our Methodology
Annuity.org uses a strict, fact-based methodology to determine which companies qualify for our rankings. To choose the best solo 401(k) providers of 2024, Annuity.org’s independent editorial team carefully evaluated the offerings from the top brokerage firms in the country.
To be eligible for consideration, a provider must offer 401(k)s in all 50 states and have at least $1 trillion in assets under management if offering a self-directed account.
Annuity.org conducted in-depth research on each provider, evaluating their account minimums, fees, the variety of investment options offered and the tools and resources made available to investors.
Additionally, the final ranking considered how providers placed in the 2024 J.D. Power Self-Directed Investor Satisfaction Study and IBD Trust Index Rating.
Learn more about our broader Editorial Guidelines.
Frequently Asked Questions About Solo 401(k) Accounts
Most big brokerages offer self-directed solo 401(k)s, so you can manage your contributions and allocations through an online platform.
Solo 401(k) accounts are different from traditional 401(k)s because they are designed to cover one self-employed person who makes contributions both as an employee and an employer.
Yes, the IRS limits elective deferral contributions for solo 401(k)s to $23,000 in 2024. Total contributions cannot exceed $69,000 in 2024.
Editor Norah Layne contributed to this article.