For self‑employed entrepreneurs and owner‑only businesses, an Individual (Solo) 401(k) blends employee elective deferrals with employer profit‑sharing to unlock powerful, tax‑advantaged savings—and in 2025 you can contribute up to $70,000 (or $77,500 if you’re 50 or older). Whether you favor pre‑tax deductions or Roth growth, this plan gives you full control over both contribution strategies and investment choices.
Realizing that potential hinges on selecting an administrator that balances cost efficiency, investment flexibility, and steadfast compliance support. Setup and maintenance fees, the range of available funds, platform usability, and ERISA guidance can shape your day‑to‑day experience—and influence your exposure to regulatory pitfalls.
In the sections that follow, we’ll introduce the 10 best Individual 401(k) providers for 2025, explain our evaluation methodology, and highlight key regulatory updates—from refreshed contribution limits to SECURE 2.0 catch‑up provisions—so you can choose the solution that aligns with your business goals. New to plan sponsorship? Begin with our 401(k) plan basics for essential background before diving in.
1. What Is an Individual (Solo) 401(k) and Who Qualifies?
An Individual (or Solo) 401(k) is essentially a standard 401(k) plan tailored for businesses with no full‑time employees other than the owner (and a working spouse). It combines the familiar benefits of an employer‑sponsored 401(k)—like high contribution limits and tax‑advantaged growth—with the simplicity of a one‑participant plan. For self‑employed professionals, consultants, and owner‑only enterprises, it’s a direct path to turbo‑charge retirement savings.
To qualify, you must earn self‑employment income and have no common‑law employees on the payroll. If your spouse works in the business and takes a W‑2, they can participate too, effectively doubling your household’s contribution potential. This structure lets you wear two hats—you defer as an “employee” and contribute as an “employer,” maximizing annual savings.
Under the latest IRS guidance, you can stack an employee elective deferral against an employer profit‑sharing contribution. For 2025, the total ceiling on combined contributions is $70,000 (or $77,500 if you hit the 50+ catch‑up). That means someone who defers the full $23,500 as an employee could then add up to $46,500 in profit‑sharing before reaching the plan cap. (See the official IRS Revenue Procedure 2024‑52 for full details.)
Imagine Jane, a solo consultant, logs $200,000 in net self‑employment income. In 2025 she contributes $23,500 as her employee deferral, then tacks on 25% of her compensation—up to the plan limit—bringing her total to the $70,000 maximum. That level of savings simply isn’t possible in most other retirement vehicles.
1.1 Elective Deferrals vs. Profit‑Sharing Contributions
As the “employee,” you can defer up to $23,500 of your compensation in 2025. If you’re age 50 or older, you qualify for an extra $7,500 catch‑up contribution. Once you hit those limits, the “employer” profit share kicks in: you may contribute up to 25% of your eligible compensation (subject to the overall cap of $70,000 or $77,500 with catch‑up).
1.2 Traditional vs. Roth Solo 401(k)
A Traditional deferral reduces taxable income today, letting you defer taxes until distribution. The Roth option uses after‑tax dollars—no immediate break, but distributions grow and come out tax‑free. If you expect to be in a higher tax bracket later or simply value tax‑free compounding, a Roth election can be compelling; if you want the deduction now, stick with Traditional.
1.3 Loans and Hardship Withdrawals
Most Solo 401(k) plans permit loans of up to 50% of your vested balance—or $50,000, whichever is lower—with repayment over five years (longer for a primary residence loan). Hardship withdrawals follow IRS criteria—expenses like medical bills or education—and generally incur a 10% penalty plus ordinary income tax unless you meet an exception.
2. 2025 Contribution Limits and Regulatory Highlights
The IRS’s Revenue Procedure 2024‑52 brings a handful of important annual adjustments for Solo 401(k) sponsors. Most notably, 2025 sees a bump in both elective deferrals and overall contribution ceilings—numbers that directly affect how much you can sock away on a pre‑tax or Roth basis. Beyond dollar limits, SECURE 2.0 ushered in enhanced catch‑up options for participants aged 60–63, while compensation caps and highly compensated employee (HCE) thresholds continue to inform testing and nondiscrimination rules.
Understanding these figures is only half the story. You’ll also want to track two sets of deadlines: individual elective deferrals must be locked in by year‑end, whereas employer profit‑sharing contributions follow your business’s tax‑filing schedule (plus extensions). And if your Solo 401(k) assets cross the $250,000 mark, your plan will need an annual Form 5500‑SF filing. The sections that follow break down the top line numbers and the filing milestones you can’t afford to miss.
2.1 Key Figures Straight from the IRS
“I Elective deferral limit for participants in 2025 is $23,500, up from $23,000 in 2024.”
“I Defined contribution limit for 2025 is $70,000, up from $69,000 in 2024.”
Beyond these headlines:
- Catch‑up contributions for those age 50 or older remain $7,500, bringing the maximum to $77,500.
- Under SECURE 2.0, participants ages 60–63 can contribute an extra $11,250 in 2025.
- The compensation cap for calculating employer contributions is $350,000.
- Employers must watch the $160,000 HCE threshold when running nondiscrimination testing.
2.2 Important Deadlines and Filings
- Employee elective deferrals: Must be submitted by December 31, 2025, to count toward that plan year.
- Employer profit‑sharing contributions: Due by your business’s tax‑filing deadline (including extensions) for 2025.
- Form 5500‑SF: Required if plan assets exceed $250,000 at year‑end; file by the last day of the seventh month after your plan’s year‑end (July 31 for calendar‑year plans).
Mark your calendar now to avoid late‑filing penalties and ensure every dollar you intend to save actually makes it into your Solo 401(k) on time.
3. Understanding Your Fiduciary Responsibilities
Plan sponsors and anyone making decisions about plan investments or operations become fiduciaries under ERISA. This means you’re legally bound to act in the best interests of plan participants and beneficiaries. Failing to follow ERISA’s fiduciary rules—by cutting corners on due diligence, favoring personal interests, or neglecting plan documents—can lead to personal liability for losses or prohibited transactions. Taking the time to understand these duties upfront helps you manage risk and keep your Solo 401(k) compliant.
3.1 Duty of Prudence and Loyalty
As a fiduciary, your first obligation is the duty of prudence and loyalty. Prudence requires you to make reasoned, evidence‑based decisions—researching investment options, comparing fees, and documenting your process. Loyalty means putting participants’ interests above your own, avoiding conflicts that might sway your choices. For example, if one vendor offers you a personal incentive for steering business their way, that conflict must be disclosed and addressed. Keeping clear records of your decision‑making path demonstrates you’ve met these duties.
3.2 Selecting and Monitoring Service Providers
Choosing the right service providers—recordkeepers, investment managers, or TPAs—is critical. A best practice is to issue a request for proposal (RFP) that gives each vendor the same data set and asks for detailed cost and service breakdowns. Compare apples to apples: setup fees, ongoing maintenance costs, investment menus, and compliance support. Once you’ve selected a provider, set a regular review schedule—at least annually—to benchmark performance and fees. Adjust or switch vendors if their offerings drift or costs creep higher.
3.3 Avoiding Prohibited Transactions
ERISA’s prohibited transaction rules prevent fiduciaries from engaging in self‑dealing, undisclosed compensation arrangements, or lending plan assets for personal benefit. That means you can’t hire a relative’s firm to administer the plan without full disclosure and proper review, nor can you use plan funds as a personal loan collateral. Familiarize yourself with the DOL fiduciary FAQs to ensure you steer clear of traps that could trigger fines or excise taxes. By proactively policing transactions, you protect both participants and your own legal standing.
4. Our Methodology for Ranking the Top Providers
Choosing the best individual 401(k) provider requires more than a gut check—it demands a systematic, transparent approach that balances cost, functionality, and ongoing support. To surface the ten plans that stand out in 2025, we assessed each provider across a range of factors that matter most to self‑employed sponsors: straightforward pricing, robust plan features, a diverse investment lineup, technology that simplifies day‑to‑day tasks, and reliable compliance assistance. Below, we walk through how we gathered data, weighted our criteria, and resolved ties to bring you a shortlist you can trust.
4.1 Criteria Breakdown and Weighting
We scored providers on six core categories, assigning relative importance based on real‑world priorities for Solo 401(k) sponsors:
- Fees and Cost Efficiency (30%): setup charges, ongoing maintenance fees, and embedded investment expenses can erode savings over time. Plans with zero or minimal fees earned top marks.
- Plan Features and Flexibility (25%): the availability of Traditional and Roth sub‑accounts, loan and hardship provisions, and plan design options reflect a sponsor’s ability to customize.
- Technology and User Experience (20%): an intuitive online dashboard, mobile app functionality, and integration with payroll or recordkeeping tools streamline administration.
- Customer Support and Service (15%): access to live advisors, responsiveness to questions, and quality of educational materials help avoid headaches when issues arise.
- Compliance and Fiduciary Tools (10%): automated Form 5500 generation, nondiscrimination testing, and fiduciary education resources reduce the risk of ERISA missteps.
By combining these weights, each provider received a composite score that reflects a balanced view of cost, functionality, and support. Our aim was to ensure no single criterion unfairly skewed the rankings.
4.2 Research and Data Compilation
Our findings draw on a mix of primary and secondary sources. We reviewed:
- Provider disclosures and published fee schedules from official websites and plan documents.
- Third‑party evaluations, including Bankrate brokerage reviews and ForUsAll research on Solo 401(k) offerings.
- Internal analysis and benchmarking data from Summit Consulting Group’s own 401(k) provider database.
- User feedback and professional critiques from industry forums and Reddit discussions.
We cross‑checked fee figures against multiple sources to spot hidden costs, and conducted hands‑on trials of platform interfaces when free demos were available. This comprehensive data gathering ensured our review reflects both the fine print and the actual user experience.
4.3 Scoring Rubric and Tie‑Breakers
After tabulating raw scores, we applied a standardized rubric to translate features and fees into a 1–10 scale per category. To resolve tied scores, we drilled deeper into two “make-or-break” factors:
- Customer Service Quality: We prioritized providers with 24/7 support lines, dedicated Solo 401(k) specialists, or low average wait times.
- Fintech Innovation: We gave extra credit to platforms that automate routine tasks—like automatic deferrals, real-time compliance alerts, or seamless API connections with payroll systems.
This tie‑breaking step ensured that when fees and features were virtually identical, sponsors see immediate, practical advantages in the final rankings.
5. Fidelity Investments: Zero Fees and Robust Menu
Fidelity Investments tops our list by delivering a virtually fee‑free Solo 401(k) experience without sacrificing investment breadth. There’s no setup charge or ongoing maintenance fee, and you’ll never pay commissions on stock or ETF trades. That cost structure alone makes Fidelity a go‑to choice for sponsors looking to maximize every dollar of retirement savings.
Beyond the wallet relief, Fidelity’s platform offers both Traditional and Roth sub‑accounts, liquidity via plan loans, and an intuitive suite of management tools. Whether you’re scheduling automatic deferrals, checking your balance on the go, or exploring new fund options, Fidelity’s online dashboard and mobile app keep administration friction to a minimum.
5.1 Fee Structure and Cost Savings
- $0 account setup fee and $0 ongoing maintenance fee
- $0 commissions on stocks and ETFs
- Access to thousands of no‑transaction‑fee mutual funds
- No hidden custodial or recordkeeping charges
When it comes to fees, Fidelity doesn’t nickel‑and‑dime you. Even if you’re trading frequently, you won’t see per‑trade commissions, and the universe of commission‑free mutual funds covers most asset classes. Over time, these savings can add up to thousands of dollars that stay invested.
5.2 Investment Selection and Flexibility
Fidelity provides one of the broadest investment lineups in the industry:
- Stocks, ETFs, bonds, and options
- Proprietary index funds with some of the lowest expense ratios available
- Access to third‑party mutual funds (including non‑Fidelity funds)
- Ability to mix Traditional and Roth contributions within a single plan
Whether you want a hands‑on approach—building a custom portfolio of individual securities—or prefer a passive strategy using low‑cost index funds, Fidelity’s menu is unlikely to hold you back.
5.3 Platform, Tools, and Support
Fidelity’s technological edge simplifies Solo 401(k) administration:
- A robust online dashboard for tracking contributions, loans, and investments
- Mobile app with real‑time trade execution and alerts
- Automatic deferral scheduling so you can set it and forget it
- Educational content, planning calculators, and live‑chat support
In addition, Fidelity’s customer service team is available 24/7, and you can tap into dedicated retirement specialists when you have complex questions or need guidance on compliance issues.
5.4 Pros & Cons
| Pros | Cons |
|---|---|
| Zero setup, maintenance, and trading commissions | Platform can feel overwhelming for beginners |
| Extensive selection of no‑transaction‑fee funds and ETFs | No bundled TPA services—must manage compliance independently |
| Both Traditional and Roth Solo 401(k) options | Loan processing can take several business days |
| Powerful online dashboard and mobile app | Limited white‑glove handholding compared to full‑service TPAs |
For a deep dive into Fidelity’s Solo 401(k) offerings, see this Bankrate review of Fidelity Investments. With its fee‑free structure and robust toolset, Fidelity delivers an unbeatable combination of cost savings and flexibility—ideal for sponsors who want to keep administrative hassles to a minimum and focus on growing their nest egg.
6. Charles Schwab: Best for Customer Service and Flexibility
Charles Schwab stands out for its combination of zero‑fee simplicity and white‑glove support. With no setup or maintenance charges and commission‑free trades on stocks and ETFs, Schwab gives Solo 401(k) sponsors the flexibility to build almost any portfolio without worrying about hidden costs. On top of that, its robust research tools and 24/7 access to knowledgeable representatives make Schwab a go‑to choice for those who value support as much as savings.
6.1 Accounts and Fee Breakdown
Schwab keeps things straightforward:
- $0 account setup fee and $0 ongoing maintenance fee
- $0 commissions on online equity and ETF trades
- No minimum balance requirement to open a Solo 401(k)
- Traditional and Roth sub‑accounts available within the same plan
Whether you’re deferring as an “employee” or contributing employer profit‑sharing, every dollar you allocate goes directly to investments—no peripheral recordkeeping or custodial charges apply. If you choose to roll over funds from a prior plan, Schwab won’t tack on any transfer fees, either.
6.2 Investment Menu and Research Tools
The self‑directed brokerage window at Schwab unlocks a nearly unlimited investment universe:
- Stocks, ETFs, bonds, mutual funds (including no‑transaction‑fee and Schwab‑branded funds)
- Access to over 4,000 commission‑free ETFs and thousands of mutual funds
- Options trading with competitive per‑contract rates
Schwab’s research suite—comprising proprietary Equity Ratings, third‑party analytics from Morningstar and Lipper, and in‑house market commentary—empowers sponsors to vet every security. Advanced screeners let you filter by dividend yield, expense ratio, or analyst consensus, so you can craft a portfolio that matches your risk profile.
6.3 Support Channels and Service Levels
Exceptional support is Schwab’s hallmark:
- 24/7 phone and live‑chat service staffed by dedicated retirement specialists
- In‑branch consultations at more than 350 locations nationwide
- Online learning center with webinars, articles, and planning calculators
- Mobile app and desktop platforms (Schwab Mobile and StreetSmart Edge) for real‑time quotes, charting, and trade execution
Beyond reactive support, Schwab proactively pushes compliance reminders and annual funding alerts, helping you stay on top of contribution deadlines and IRS filings.
6.4 Pros & Cons
| Pros | Cons |
|---|---|
| Zero setup and maintenance fees | No combined TPA and compliance package |
| Commission‑free trades on stocks and ETFs | Advanced platform features may overwhelm new sponsors |
| Full self‑directed brokerage window | No integrated fiduciary support—plan sponsors must manage ERISA tasks separately |
| 24/7 phone, chat, and in‑branch access | Some mutual funds carry transaction fees |
For an in‑depth look at Schwab’s Solo 401(k) offering, check out this Bankrate review of Charles Schwab. If responsive service and a flexible trading environment top your wish list, Schwab delivers both in spades.
7. E*TRADE: Top Choice for Loan and Withdrawal Flexibility
ETRADE stands out for its generous loan program and straightforward withdrawal options, making it a go‑to Solo 401(k) provider for sponsors who value liquidity. There are no setup or ongoing maintenance fees, and commission‑free trading on stocks and ETFs keeps your costs low. ETRADE supports both Traditional and Roth Solo 401(k) subaccounts and delivers a broad investment menu—from individual equities to mutual funds and options—so you can tailor your plan to fit your strategy.
7.1 Loan Programs and Hardship Rules
ETRADE’s loan policy aligns with IRS guidelines, allowing you to borrow up to 50% of your vested balance or $50,000 (whichever is less). Standard loans carry a five‑year repayment term, with extensions up to ten years if you use the funds to buy or build your primary home. Hardship withdrawals follow IRS criteria—qualified expenses include medical bills, higher education costs, and principal residence purchases—but they may incur a 10% early‑withdrawal penalty plus income tax unless an exception applies. ETRADE’s clear documentation and online forms help you work through emergencies with confidence.
7.2 Fee Schedule and Trading Costs
- $0 account setup fee and $0 ongoing maintenance fee
- $0 commissions on online trades of stocks, ETFs, and most mutual funds
- Competitive pricing on options and bond trades (see E*TRADE’s fee schedule for current per‑contract and ticket charges)
- No rollover or transfer fees when bringing assets from another plan
With this transparent structure, almost every dollar you contribute stays invested and working for your retirement goals.
7.3 Platform Features and Mobile Experience
E*TRADE’s platform delivers both power and simplicity:
- Customizable watchlists, real‑time quotes, and advanced charting
- Screening tools for stocks, ETFs, mutual funds, and options strategies
- A dedicated Solo 401(k) dashboard to track contributions, loans, and distributions
On mobile, the E*TRADE app mirrors the web experience: you can place trades, adjust deferral schedules, and monitor loan payments from your phone. Push notifications remind you of key deadlines—no more scrambling at year‑end to hit your deferral targets.
7.4 Pros & Cons
| Pros | Cons |
|---|---|
| No setup or maintenance fees | No bundled fiduciary services—compliance managed solo |
| Commission‑free trades on stocks and ETFs | Options and bond trades still incur fees |
| Generous loan program (50% of vested balance) | Hardship withdrawals remain taxable and penalized |
| Both Traditional and Roth Solo 401(k) options | Platform can feel complex for first‑time sponsors |
| Robust web platform and intuitive mobile app | No automatic nondiscrimination testing or Form 5500 filing |
For a deeper dive into ETRADE’s Solo 401(k) features and costs, check out this Bankrate review of E*TRADE. If loan flexibility and fee‑free trading top your wishlist, ETRADE delivers a compelling package.
8. Merrill Edge: Integrated Banking and Advisory Access
Merrill Edge stands out by blending retirement plan administration with the banking and advisory resources of Bank of America and Merrill Lynch. While there’s a business setup fee and ongoing charges, sponsors gain direct access to Certified Financial Planners and Morningstar‑powered model portfolios. For plan sponsors who already bank with Bank of America—or who value hands‑on guidance—Merrill Edge offers a smooth link between daily cash management and long‑term retirement planning.
8.1 Setup and Recurring Fees
Merrill Edge’s pricing reflects its advisory pedigree:
- Business setup fee: $100 (one‑time)
- Business recordkeeping: $20–$25 per month, based on plan assets
- Individual participant recordkeeping: $3 per participant per month
- Advisory fee: 0.52% of assets under management
These costs exceed most zero‑fee broker solutions, but they include access to dedicated planners who assist with portfolio construction, loan management, and compliance deadlines.
8.2 Investment Guidance and Tools
One of Merrill Edge’s biggest draws is its access to Morningstar model portfolios:
- Pre‑built portfolios ranging from conservative to aggressive
- Automated rebalancing and dynamic allocation recommendations
- Integration with Bank of America cash‑sweep accounts for uninvested contributions
- Both Traditional and Roth Solo 401(k) sub‑accounts under one plan
Sponsors who prefer deeper research can tap Merrill’s in‑house equity and fixed‑income analysis as well as third‑party insights.
8.3 Customer Experience
Merrill Edge merges digital convenience with in‑person support:
- Online dashboard and mobile app for tracking contributions, balances, and loan repayments
- CFP‑led planning assistance via phone or at Bank of America financial centers
- Email alerts and calendar reminders for deferral deadlines, profit‑sharing due dates, and Form 5500 filings
- Webinars and articles on fiduciary duties, plan design, and retirement tax strategies
While calls to advisory lines may route through multiple teams, sponsors appreciate the depth of expertise available for complex situations—like nondiscrimination testing or catch‑up contribution planning under SECURE 2.0.
8.4 Pros & Cons
| Pros | Cons |
|---|---|
| Integrated Bank of America cash management and plan administration | $100 setup fee plus monthly recordkeeping and AUM charges |
| Direct access to CFP‑led advisory support and Morningstar portfolios | Higher ongoing costs may erode returns for smaller plan sizes |
| Traditional and Roth options in one platform | Advisory level service may exceed needs of DIY sponsors |
| Automated rebalancing and dynamic allocation tools | Fee structure more complex than commission‑free brokers |
For a deep dive into Merrill Edge’s Solo 401(k) features and fees, see this Bankrate review of Merrill Edge. Sponsors seeking an all‑in‑one banking and advisory relationship will find Merrill Edge a compelling, fully integrated solution.
9. Vanguard: Champion of Low‑Cost Index Funds
Vanguard built its reputation on putting investors first, and its Solo 401(k) continues that tradition. There’s no account setup charge, but Vanguard applies a $20 annual fee for each mutual fund you hold. If you maintain at least $50,000 in Vanguard assets across all accounts, those per‑fund fees are waived—meaning your cost can effectively be zero. For sponsors who prioritize ultra‑low expense ratios and plan to concentrate assets in a handful of index funds, Vanguard offers a compelling, cost‑efficient home for retirement savings.
Unlike full‑service brokerages, Vanguard limits you to its own lineup of around 100 mutual funds and ETFs. That constraint ensures all offerings adhere to Vanguard’s famously low‑cost structure, but it does mean you can’t trade individual stocks or third‑party funds. If your strategy revolves around a core of broad‑market index funds or target‑date portfolios, Vanguard’s investment universe delivers deep diversification at minimal cost.
On the technology front, Vanguard’s online platform and mobile app cover the essentials: you can view balances, place trades, schedule deferrals, and monitor loan repayments. While the interface isn’t as flashy as some fintech rivals, it’s straightforward and reliable. For sponsors seeking more guidance, Vanguard also offers a Digital Advisor option—an automated portfolio builder that reallocates your assets based on your risk profile.
9.1 Fee Waiver Details and Conditions
- $0 account setup fee
- $20 annual fee per mutual fund held
- Waived if you have ≥ $50,000 in Vanguard assets (across IRAs, brokerage, and retirement accounts)
- No additional income‑based or asset‑tiered maintenance charges
9.2 Investment Universe
- Approximately 100 Vanguard mutual funds and ETFs
- Core low‑cost index funds covering U.S. equities, bonds, international markets, and specialty sectors
- Target‑date funds for glide‑path simplicity
- No direct access to non‑Vanguard funds, individual stocks, or options
9.3 User Interface and Tools
- Web dashboard for managing contributions, loans, and distributions
- Vanguard mobile app for trade execution and account alerts
- Digital Advisor service for hands‑off, algorithm‑driven portfolio management
- Basic planning calculators and educational articles available online
9.4 Pros & Cons
| Pros | Cons |
|---|---|
| Ultra‑low expense ratios on in‑house index funds and ETFs | Investment options limited to Vanguard‑branded products |
| No setup fee and potential fee waivers above $50,000 assets | $20 per‑fund fee if assets fall below waiver threshold |
| Traditional and Roth Solo 401(k) sub‑accounts | No stock, bond, or option trading in Solo 401(k) |
| Digital Advisor option for automated rebalancing | Platform features more basic than full‑service brokers |
For an external take on Vanguard’s offerings, see this Bankrate review of Vanguard. If your focus is on minimizing costs through passive index strategies, Vanguard’s Solo 401(k) is hard to beat.
10. Guideline: Best for Turnkey Automation and Compliance
Guideline offers a single-platform solution that bundles third‑party administration (TPA) with recordkeeping, automating the heavy lifting so you can focus on running your business instead of wrestling with paperwork. For a flat fee of $39 per month plus $8 per active participant, you get comprehensive Solo 401(k) services—no tiered pricing, no surprise add‑ons. From plan setup and nondiscrimination testing to Form 5500 generation and loan servicing, Guideline handles every compliance step and keeps your plan on track.
Beyond administration, Guideline manages investments through low‑cost, professionally designed ETF portfolios. Rather than scouring fund menus yourself, you choose a risk‑level model and Guideline handles ongoing rebalancing, performance monitoring, and tax‑loss harvesting. It’s a hands‑off approach that appeals to sponsors who want fiduciary peace of mind without the DIY grind.
Looking for more options? Explore our full list of 401k providers to compare features and fees across the market.
10.1 Transparent Pricing Model
Guideline’s fee structure is refreshingly simple:
- $39 monthly base fee covers plan administration and compliance services.
- $8 monthly per participant fee scales with your plan size—no hidden charges or asset‑based fees.
- All Form 5500 filings, nondiscrimination testing, and annual compliance checks are included.
- No extra costs for plan amendments, loan processing, or distribution requests.
This all‑in‑one model removes the guesswork from budgeting your Solo 401(k). You know exactly what you’ll pay each month, regardless of market swings or asset growth.
10.2 Automated Administrative Workflows
Automating compliance tasks is Guideline’s hallmark:
- Online plan setup with digital signature—get your Solo 401(k) live in under 15 minutes.
- Auto‑generated Form 5500 submissions when your plan crosses the $250,000 asset threshold.
- Integrated nondiscrimination testing (ADP/ACP) to ensure compliance without manual spreadsheets.
- Built‑in loan origination and repayment tracking, with participant portals for self‑service.
With these workflows, you can eliminate spreadsheet errors, reduce fiduciary risk, and focus on strategic plan decisions instead of administrative minutiae.
10.3 Investment Options and Performance
Guideline streamlines investment selection through curated ETF portfolios:
- A menu of diversified, low‑cost ETF models—conservative, moderate, and growth allocations.
- Professional rebalancing keeps your portfolio aligned with your target risk level.
- Optional tax‑loss harvesting in taxable accounts (for sponsors using Guideline’s broader services).
- Transparent expense ratios, typically ranging from 0.07% to 0.20% per portfolio.
Rather than overwhelming you with thousands of fund choices, Guideline’s vetted models simplify decision‑making and drive consistent performance over time.
10.4 Pros & Cons
| Pros | Cons |
|---|---|
| All‑in‑one TPA and recordkeeping for one flat fee | Limited to ETF‑based model portfolios |
| Automatic compliance tasks: Form 5500, testing, loans | No self‑directed brokerage window |
| No hidden fees—pricing scales only by participant count | Less control over individual security choices |
| Quick digital setup and intuitive admin dashboard | Investment lineup less flexible than brokers |
Guideline provides turnkey Solo 401(k) administration built for sponsors who value automation and predictability. Its clear pricing and comprehensive compliance coverage make it an excellent fit for small‑business owners seeking to offload administrative burdens without sacrificing investment quality.
11. Betterment for Business: Robo‑Advisor Meets Retirement Plans
Betterment for Business brings robo‑advisor simplicity to Solo 401(k) administration, pairing automated investing with turnkey plan management. For sponsors who want to outsource both portfolio construction and compliance tasks, Betterment offers a unified platform: goal‑based ETF portfolios, digital plan setup, and ongoing reminders all under one roof. The trade‑off is less hands‑on control over individual securities—but for many small‑business owners, that’s a welcome relief from spreadsheets and paperwork.
11.1 Fee and Account Setup
Betterment for Business charges a single advisory fee of 0.28% of assets under management. There are no separate commissions on trades, no account‑setup fees, and no extra maintenance charges. You’ll complete a digital onboarding flow—providing basic business details, designating participants, and signing plan documents online. Once your Solo 401(k) is live, contributions and allocations flow automatically into your chosen portfolio.
11.2 Portfolio Strategies
With Betterment’s goal‑based approach, you select a target retirement date or risk level, and the platform builds a diversified ETF mix tailored to your horizon. Portfolios typically include U.S. and international equities, municipal and corporate bonds, and real‑estate securities. Betterment handles:
- Automated rebalancing to keep your allocation on track
- Tax‑efficient fund placement (where applicable)
- Dynamic adjustments as market conditions shift
This hands‑off model removes guesswork around asset selection and reallocation, giving you a professionally managed portfolio without a hefty advisory bill.
11.3 Administrative and Compliance Features
Betterment’s digital back end tackles the administrative lift:
- Online plan adoption documents and electronic signatures
- Automated reminders for deferral deadlines and employer contribution windows
- Basic Form 5500‑SF preparation alerts once plan assets exceed $250,000
- Participant portals where employees (or your spouse) can view balances and update deferrals
While Betterment doesn’t offer standalone loan processing or hardship‑withdrawal support, its compliance dashboard keeps you apprised of key tasks—and points you back to IRS resources when manual steps are required. For a broader comparison, see our full list of 401k providers.
11.4 Pros & Cons
| Pros | Cons |
|---|---|
| Low, all‑in‑one advisory fee (0.28%) | No self‑directed brokerage window |
| Automated, goal‑based ETF portfolios with rebalancing | Limited to Betterment’s model portfolios |
| Digital plan setup and reminders for compliance deadlines | No built‑in loan or hardship‑withdrawal processing |
| Zero commissions, zero hidden fees | Less control for sponsors who prefer hands‑on investing |
Betterment for Business shines for sponsors who value simplicity and professional portfolio management. If you’d rather delegate both investing and administrative chores to an automated system, it delivers a streamlined Solo 401(k) experience—just be comfortable trading flexibility for convenience.
12. ADP: Payroll‑First Solo 401(k) Experience
ADP brings your Solo 401(k) administration and payroll processing under one roof, streamlining contributions and remittances with minimal manual work. If you already run payroll through ADP, adding a Solo 401(k) plan means deductions flow automatically from each pay cycle into your retirement account. This tight integration reduces reconciliation errors and frees you from juggling separate systems for payroll and plan recordkeeping.
Beyond payroll, ADP offers optional 3(16) fiduciary administration, shifting many ERISA compliance tasks to their experts. From drafting plan documents to generating annual nondiscrimination tests and preparing Form 5500 filings, ADP’s compliance toolkit keeps you on the right side of regulators. Your participants (including a working spouse) gain access to ADP’s employee portal, where they can view balances, manage deferral elections, and request loans or hardship withdrawals in a few clicks.
12.1 Pricing and Credits
ADP’s Solo 401(k) pricing typically consists of:
- A one‑time setup fee (varies by plan size and custom features)
- A monthly per‑participant fee (often $2–$5)
- Optional charges for 3(16) fiduciary services or plan amendments
However, many ADP payroll packages include retirement plan credits or discounts. These credits can offset—and in some cases eliminate—the per‑participant fee, making ADP’s Solo 401(k) competitive with standalone recordkeepers. Be sure to review your payroll agreement for any built‑in retirement‑plan incentives.
12.2 Payroll Integration Benefits
By linking your retirement plan to ADP’s payroll engine:
- Deferrals and employer contributions are withheld automatically each pay period
- Contributions are remitted electronically—no manual transfers or check writing
- Payroll errors, such as over‑ or under‑deferrals, are flagged upfront during the run
- Year‑end reconciliation is simplified, since payroll and plan records live in one system
This deep integration not only saves time but also helps you stay within IRS deferral deadlines and avoids late‑deposit penalties.
12.3 Compliance and Reporting Tools
ADP’s platform includes robust compliance features:
- 3(16) fiduciary administration: ADP acts as named plan administrator, handling day‑to‑day plan operations
- Automated nondiscrimination (ADP/ACP) testing and correction notices
- Digital generation of Form 5500 and IRS‑required disclosures when plan assets exceed $250,000
- Online audit trail and document library, so you can produce adoption agreements, summary plan descriptions, and fiduciary‑meeting minutes on demand
These tools reduce your fiduciary burden, giving you confidence that your Solo 401(k) adheres to ERISA requirements.
12.4 Pros & Cons
| Pros | Cons |
|---|---|
| Seamless integration with ADP payroll—automated deferrals | Setup fees can be higher if no payroll credits apply |
| Optional 3(16) fiduciary services and compliance reporting | Investment menu is more limited than dedicated brokers |
| Participant self‑service portal for deferrals, loans, balances | Administrative portal can feel complex for new users |
| Consolidated HR, payroll, and retirement platform | Support response times vary by service tier |
For a broader view of how ADP stacks up against other solutions, explore our full list of 401k providers.
13. Paychex: Bundled HR, Payroll, and Retirement Plans
Paychex brings retirement planning into your broader HR and payroll ecosystem, offering a unified platform that handles everything from hiring to benefits to retirement contributions. For small‑business sponsors who juggle multiple systems—payroll software, time‑tracking tools, and a separate 401(k) administrator—Paychex consolidates these functions under one roof. You get the convenience of auto‑deducted deferrals each pay period, integrated compliance alerts, and a single point of contact for questions spanning payroll, HR, and retirement.
By adding Paychex’s 401(k) plan to your existing HR suite, you eliminate data silos and reduce manual reconciliation. Whether you’re setting up eligibility rules, managing loan requests, or tracking vesting schedules, everything lives in one portal. This bundle approach not only saves time but also helps guard against errors—because your payroll engine feeds retirement contributions directly into your recordkeeping system.
13.1 Fee Structure
Paychex’s pricing varies based on the scope of services you select:
- A base monthly fee for payroll and HCM services, typically tiered by employee count.
- An additional per‑employee, per‑month fee for retirement plan recordkeeping and compliance.
- Optional fees for investment advisory services if you engage Paychex’s in‑house advisors.
- One‑time setup charges, which may be offset by promotional credits when bundled with payroll.
Because Paychex sells retirement as part of a broader HR bundle, you’ll often see discounts or credits applied if you’re already a payroll client. Always request a detailed fee schedule to compare bundled versus stand‑alone plan costs.
13.2 HR and Benefits Bundle Advantages
When retirement is embedded in your HR platform, several efficiencies emerge:
- Auto‑synchronization of deferral elections: changes in payroll elections immediately flow into your Solo 401(k) plan, reducing late‑deposit risk.
- Unified benefits administration: health insurance, flexible spending accounts, and retirement contributions show up on the same dashboard, simplifying open enrollment and deductions.
- Time‑and‑attendance integration: accurate pay data feeds both payroll and plan eligibility calculations.
- Compliance alerts across functions: timely reminders for 401(k) deadlines, ACA reporting, and payroll tax filings.
This holistic setup means you’re not repeatedly uploading data to different vendors or chasing spreadsheets—your HR team and plan sponsor wear fewer hats.
13.3 Vendor Support and Onboarding
Paychex assigns a dedicated service team to each client, ensuring a single point of contact for HR, payroll, and retirement questions. Typical onboarding steps include:
- Discovery call to map your payroll and HR workflows.
- Plan design consultation to tailor Solo 401(k) features (loan provisions, Roth option, vesting schedules).
- Data migration and system configuration, with parallel testing to validate deferral and matching logic.
- Participant enrollment support—online portals and paper‑less forms speed spouse or employee setup.
- Training sessions and ongoing webinars to keep you updated on regulatory changes and best practices.
The Paychex dashboard also includes compliance widgets—Form 5500 reminders, nondiscrimination testing alerts, and annual plan document updates—so you won’t miss key filings.
13.4 Pros & Cons
| Pros | Cons |
|---|---|
| Tight integration with payroll, benefits, and time‑tracking systems | Setup fees can be higher if not bundled with payroll |
| Single platform for HR, payroll tax filings, and retirement contributions | Retirement investment menu is narrower than some brokers |
| Dedicated service team and turnkey onboarding | Per‑employee fees may exceed pure‑play recordkeepers |
| Automated compliance alerts and built‑in fiduciary‑testing dashboards | Learning curve for navigating a comprehensive HCM system |
For a side‑by‑side comparison of Paychex and other solutions, visit our full list of 401k providers to find the right fit for your business.
14. How to Choose the Right Individual 401(k) Provider for Your Business
Selecting the best Individual 401(k) provider means balancing five key dimensions: overall fees, the breadth of investment options, administrative burden, compliance support, and—where relevant—payroll integration. Every business has its own mix of priorities. A low‑cost, self‑directed brokerage may suit a hands‑on sponsor with deep investing experience, while an all‑in‑one TPA solution can free a busy owner from paperwork and ERISA risk. Below is a sample decision matrix you can adapt to compare the top contenders.
| Provider | Fees | Investments | Support & Compliance | Technology & UX | Payroll Integration |
|---|---|---|---|---|---|
| Fidelity | $0 setup / $0 ongoing | Stocks, ETFs, mutual funds | DIY; live‑chat specialists | Robust dashboard + mobile | None |
| Schwab | $0 setup / $0 ongoing | Full brokerage window | 24/7 phone & live‑chat | StreetSmart Edge + mobile | None |
| Guideline | $39 base + $8 per participant | Curated ETF model portfolios | Automated Form 5500, testing | Intuitive admin portal | None |
| ADP | Varies; possible payroll credits | Limited to platform funds | 3(16) services available | Integrated with ADP portal | Seamless |
| Paychex | Bundled with payroll | Paychex‑approved funds | Built‑in compliance alerts | Unified HR/HCM interface | Seamless |
Use this matrix as a blueprint—swap in your plan size, preferred fund lineup, or anticipated need for loans and hardship provisions to see which scores highest for your situation.
14.1 Side‑by‑Side Feature Comparison
Rather than relying on marketing copy, zoom in on the factors that matter most:
- Fees: Note setup charges, ongoing maintenance, per‑transaction costs, and any hidden custodial fees.
- Investments: Do you need a full brokerage window or will a curated ETF lineup suffice?
- Compliance support: Is nondiscrimination testing, Form 5500 filing, and fiduciary guidance included or extra?
- Technology: How intuitive is the web portal and mobile app? Can automatic deferrals be scheduled?
- Payroll: If you already run payroll through ADP or Paychex, integrated remittances can eliminate manual steps.
By scoring each provider against these categories—perhaps on a 1–5 scale—you’ll arrive at a tailored shortlist instead of a one‑size‑fits‑all recommendation.
14.2 Matching Your Business Profile to a Provider
Your choice hinges on your business’s unique characteristics:
- Lean, one‑owner shops: If you manage everything solo and want minimal admin, a turnkey TPA like Guideline or Betterment could be ideal.
- Investment‑savvy sponsors: Those who relish self‑directed trading may prefer Fidelity or Schwab for zero‑fee commissions and broad asset access.
- Payroll‑driven operations: If payroll accuracy and deferral timing are top of mind, ADP or Paychex integration can reduce errors and reconcile records automatically.
- Advisory relationships: Business owners who already bank with Bank of America or value dedicated CFP support may gravitate toward Merrill Edge’s bundled advisory model.
Think through your day‑to‑day workflow, in‑house expertise, and whether you want to own every compliance step or outsource it.
14.3 Considering a Third‑Party Administrator
Handing off plan administration to a specialized TPA can lift the fiduciary burden from your shoulders. A 3(16) administrator like Summit Consulting Group, LLC will:
- Draft and amend plan documents
- Perform nondiscrimination testing and prepare Form 5500 filings
- Process loans, distributions, and hardship withdrawals
- Keep you abreast of regulatory changes and ERISA best practices
By pairing a low‑cost recordkeeper with an independent fiduciary service, you get both competitive investment options and indemnification against many compliance missteps. Learn more about our 3(16) and independent fiduciary services to see how Summit Consulting Group can simplify your Solo 401(k) sponsorship.
Choosing the right provider is a strategic decision—one that affects your retirement readiness, administrative headaches, and legal exposure. Use these guidelines and the decision matrix above to find a solution that fits your goals, resources, and comfort with fiduciary responsibility.
15. Additional Resources and Next Steps
Choosing the right Individual 401(k) provider is an important milestone—now it’s time to leverage authoritative guidance and practical tools to put your plan in motion. Whether you need official rules, interactive calculators, or ready‑to‑use templates, the resources below will help you stay compliant, optimize your design, and streamline administration. When you’re ready for personalized support, reach out to schedule a demo or request a fee quote from our team.
15.1 Helpful Government and Industry Links
– Internal Revenue Service Solo 401(k) FAQs
https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people
– Department of Labor Fiduciary Responsibility Toolkit
https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/meeting-your-fiduciary-responsibilities
– IRS Form 5500‑SF Instructions (one‑participant plan filing)
https://www.irs.gov/retirement-plans/form-5500-sf-short-form-annual-return-of-small-employee-benefit-plan
15.2 Summit Consulting Group Tools and Guides
- Retirement Plan Calculators: Estimate your projected balances, required deferrals, and catch‑up contributions.
- Sample Plan Document Templates: Streamline your adoption agreement, summary plan description, and amendments.
- Request for Proposal (RFP) Checklist: Standardize vendor comparisons with consistent data points on fees, services, and technology.
- 401(k) Plan Review Checklist: A step‑by‑step guide to auditing your existing plan for cost savings, compliance gaps, and investment efficiency.
Next Steps:
- Explore these links and tools to finalize your plan design and budgeting.
- Schedule a one‑on‑one demo to see our administration portal in action.
- Request a customized fee quote based on your business size and desired services—no obligation.
Ready to simplify administration, fortify compliance, and maximize retirement savings? Contact Summit Consulting Group, LLC today to get started.
Final Thoughts and Call‑to‑Action
Choosing the right Individual 401(k) provider is a strategic decision that impacts your retirement preparedness, daily administration, and ERISA compliance. Whether you prioritize low fees and self‑directed investing, seamless payroll integration, or turnkey fiduciary management, the best solution aligns with your business goals, risk tolerance, and in‑house bandwidth. Use the decision matrix and provider profiles above to pinpoint a plan that matches your priorities—and don’t hesitate to revisit key criteria as your business evolves.
Remember, even the most robust platform can’t fully protect you from fiduciary risk unless you have sound processes in place. From setting up your plan documents and monitoring service‑provider performance to ensuring timely contributions and filings, each step matters. If the administrative and compliance burden feels overwhelming, a dedicated third‑party administrator can help shoulder those responsibilities and reduce your personal liability.
Ready to simplify administration and reduce fiduciary liability? Visit Summit Consulting Group, LLC to learn how our independent 3(16) administration and ERISA‑section 402(a) fiduciary services can support your Solo 401(k) sponsorship—so you can focus on growing your business while we handle the details.
