TD Ameritrade

Solo 401k

Solo 401(k) plans for self-employed individuals

The Solo 401(k) puts the power of the 401(k) with its high contribution limits and flexible investments into your hands. This plan allows you to contribute to the plan in the capacity of both employer and employee, providing owners the ability to maximize their personal retirement contributions and their business deductions.

When you choose to invest for the future at TD Ameritrade, you will not be charged administrative or account maintenance fees.** You also get access to a breadth of investment choices, and guidance from our team of Investment and Financial Consultants.

Speak with a Financial Consultant to get started today at 800.472.0586.

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Best For:

  • Self-employed individuals without full-time employees (other than a spouse or business partner)

Tax Benefits:

Can contribute as both the employer and the employee, therefore can take advantage of:

  • tax deductible contributions as the employer
  • pre-tax contributions as the employee
  • tax-deferred growth potential on contributions

Employee Contribution Limits:

When contributing as the employee in 2019, up to $19,000 in salary deferrals ($25,000 for those 50+)

Employer Contribution Limits:

  • When contributing as the employer, 25% of compensation
  • Total contributions, cannot exceed $56,000 ($62,000 for those 50+) in 2019

Date Account Must Be Opened By:

  • New account must be opened by the end of business's tax year (Generally December 31)

Funding Deadline:

  • Account must be funded prior to the employer’s tax return due date plus extensions

Administrative Responsibilities:

  • An annual IRS Form 5500 must be filed after the plan assets exceed $250K
  • Unlike traditional 401k plans, there are no compliance testing requirements (Compliance testing requirements ensure 401k plans do not favor highly compensated employees and are non-discriminatory)


  • Minimum required distributions start at age 70½
  • 10% early withdrawal penalty if under age 59½ (exceptions may apply)

Further Details:

Check the background of TD Ameritrade on FINRA's BrokerCheck