A Solo 401(k) is a retirement plan designed for self-employed individuals and business owners with no full-time employees other than a spouse, combining the higher contribution flexibility of a traditional 401(k) with the ability to act as both employer and employee within the same plan. Contributions can generally be made in two capacities, as an employee deferral and as an employer profit-sharing contribution, which together typically allow for larger total contributions than a standard IRA permits.
Many Solo 401(k) plans can be structured to allow the account holder to serve as trustee, giving direct control over how funds are invested, including the option to hold alternative assets such as private real estate alongside conventional securities. Some versions also support after-tax and Roth contributions, adding further flexibility for tax planning. Because eligibility depends on business structure and the absence of common-law employees, individuals typically need to confirm eligibility and plan design with a qualified retirement plan provider before establishing one.
Further reading: Real Estate Investment Strategies for Accredited Investors in 2026
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