Best Solo 401(k) Providers for Self-Employed Freelancers

If you're self-employed, a Solo 401(k) lets you contribute as both employee and employer—stacking deferrals to reach limits that leave a SEP IRA in the dust. For 2026, the combined ceiling is $72,000, with the employee deferral alone at $24,0005. Add catch-up contributions and the number climbs to $80,000 for ages 50–59 or 64+, and $83,250 for the super catch-up window at ages 60–634.

The reason that matters: a freelancer earning $75,000 can stuff far more into a Solo 401(k) than a SEP IRA, because the SEP IRA caps employer contributions at 25% of compensation—roughly $18,750—while the Solo 401(k) lets you contribute $24,000 as the employee plus an employer share on top5. At lower and mid-range income levels, the Solo 401(k) wins decisively.

But not all Solo 401(k) providers are built the same. The three major brokerages—Fidelity, E*TRADE (Morgan Stanley), and Charles Schwab—offer what the IRS calls "prototype" plans: standardized, low-cost, and easy to open. The trade-offs come down to Roth access, loan provisions, and investment menus. Here's how they compare.

How We Evaluated

We looked at the three most widely recommended prototype Solo 401(k) providers, drawing on Investopedia's analysis of 14 providers across 21 weighted criteria1, The College Investor's side-by-side comparison2, and feature matrices from BestSolo401k.com3 and ForUsAll4. The dimensions that matter most for freelancers:

• Fees: Setup costs, annual maintenance, and per-trade commissions eat into returns. All three brokerages charge $0 to open and maintain.
• Roth contributions: A Roth option lets you pay tax now and withdraw tax-free later—valuable for tax diversification, especially if you expect higher rates in retirement.
• 401(k) loans: Freelancer income is irregular. The ability to borrow from your own account (up to $50,000 or 50% of the balance) can be a lifeline without triggering early-withdrawal penalties.
• Investment selection: More no-fee mutual funds and commission-free ETFs mean more flexibility in building a portfolio.

The Picks

1. Fidelity Investments — Best Overall

Fidelity earned Investopedia's top spot after analysis of 14 providers1. There are no setup or annual fees, stock and ETF trades are $0, and the platform offers 3,300+ no-fee mutual funds1. Roth contributions are supported, which matters for freelancers who want tax diversification2.

What's missing? Loans. Fidelity's prototype plan doesn't allow 401(k) loans1. If you need to borrow against your balance, you'll have to look elsewhere. For most long-term investors who don't anticipate needing a loan, that's a reasonable trade-off for the breadth of investment options and the absence of fees.

Fidelity is the pick for freelancers who want the widest investment menu at the lowest cost and don't need loan access.

2. E*TRADE (Morgan Stanley) — Best for Features

ETRADE is the only one of the three major prototype providers that offers both Roth contributions and* 401(k) loans1. The College Investor called it the most robust free prototype plan, noting Roth + traditional support, loans, and rollovers with no setup fees2. The no-fee mutual fund menu is the largest of the three at 5,000+1.

For freelancers with irregular income, the loan provision is the standout feature. Being able to borrow from your own retirement savings—rather than taking a taxable distribution—can bridge cash-flow gaps without derailing your long-term plan. Combined with Roth flexibility, E*TRADE covers the two features that matter most to self-employed savers who want maximum control.

3. Charles Schwab — Best for Low Fees

Schwab matches Fidelity on cost: no setup fees, no maintenance fees, and $0 stock and ETF trades1. The no-fee mutual fund selection is strong at 4,000+1. Roth contributions are supported2.

The gap? Like Fidelity, Schwab doesn't offer 401(k) loans1. ForUsAll also notes that Schwab charges up to $74.95 for some mutual fund trades outside the no-fee list4, so cost-conscious investors should stick to the commission-free menu or use Schwab's own ETFs.

Schwab is the pick for fee-averse freelancers who want a large fund selection and don't need loan access.

Feature Comparison

All three support Roth contributions. Only E*TRADE allows loans. All three are free to open and maintain. The investment menus differ in scale but not dramatically.

2026 Contribution Limits at a Glance

Source: Fidelity5 and ForUsAll4.

When a Prototype Plan Isn't Enough

The three providers above offer "prototype" plans—standardized, IRS-pre-approved, and free. But if you need features like a mega backdoor Roth (after-tax contributions converted to Roth), checkbook control for real estate or alternative-asset investing, or a fully custom plan document, you'll need a "non-prototype" provider2.

These come at a cost. BestSolo401k.com lists first-year costs ranging from Carry Core at $299 to Rocket Dollar at $1,0803. The College Investor notes MySolo401k charges $525 setup plus $125 annually, while IRA Financial runs $999 setup and $399 per year2. For most freelancers, the free prototype plans cover the essentials; the paid providers are worth considering only if you have specific advanced needs.

The Bottom Line

For the majority of self-employed freelancers, Fidelity delivers the best combination of zero fees, broad investment options, and Roth support. If loan access is a must-have for your irregular income, E*TRADE is the clear choice—it's the only free prototype provider that offers both Roth and loans. And if you're purely cost-focused and already in the Schwab ecosystem, Schwab is a solid no-fee alternative with a deep fund menu.

All three let you contribute up to $72,000 for 20265. The question isn't whether to open a Solo 401(k)—it's which one matches the features you need.

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