In the world of self-employment, planning for retirement isn’t just a good idea, it’s a necessity. For sole proprietors, freelancers, and small business owners without full-time employees, the Solo 401(k) stands out as one of the most powerful tools for building long-term wealth. It offers high contribution limits, potential Roth benefits, and in some cases, unmatched investment flexibility.
In 2025, JP Morgan entered the Solo 401(k) space with a new offering aimed at capturing the growing market of self-employed professionals. Known for its name recognition and investment management tools, JP Morgan promises a low-cost and streamlined experience. On the other hand, IRA Financial has spent years establishing itself as a leader in the self-directed retirement plan space, offering a Solo 401(k) plan that prioritizes control, alternative investment opportunities, and IRS compliance support.
So, which one is right for you? The answer depends on how you plan to use your retirement savings—and how much control you want over your investments.
Key Takeaways
- JP Morgan’s Solo 401(k) is simple and cost-effective but limited to traditional investments like stocks and mutual funds.
- IRA Financial offers greater flexibility, flat fees, alternative asset investing, checkbook control, and advanced tax strategies.
- Choose based on your investment goals—traditional investors may prefer JP Morgan, while active or alternative investors will benefit more from IRA Financial.
JP Morgan’s New Entry Into the Solo 401(k) Market
On July 16, 2025, JP Morgan Chase expanded its Everyday 401(k) platform with a Solo 401(k) plan targeted at sole proprietors and self-employed individuals. The plan is designed to let participants set up the plan online and offers flexible investment options, ranging from JP Morgan Asset Management portfolios to custom selections.
JP Morgan’s Solo 401(k) is designed to appeal to the average investor, someone who wants to make consistent contributions into a mix of mutual funds, ETFs, or individual stocks. It integrates seamlessly with JP Morgan’s existing investment platform and mobile app, providing a cohesive user experience for those already familiar with its brokerage services.
There is a $350 start-up fee for a new 401(k) plan. Additionally, there’s a $540 annual fee with a 0.15% asset fee. You can add an eligible spouse to the plan for an extra $150 yearly. Investors may still encounter trading fees, fund expense ratios, or other costs tied to the investments they select. For those focused solely on publicly traded securities and seeking a low-maintenance plan, it’s a solid option.
What the plan doesn’t offer, however, is flexibility. Because the JP Morgan Solo 401(k) is fully custodial, all investments must be made through its brokerage platform. That means no real estate, no private equity, no crypto, and no direct access to plan funds through checkbook control. For more advanced investors—or those looking to diversify beyond traditional markets—these limitations can be significant.
IRA Financial’s Self-Directed Solo 401(k): A Flexible, Open-Architecture Alternative
In contrast to JP Morgan’s simplified approach, IRA Financial’s Self-Directed Solo 401(k) is built for investors who want more control over where and how their retirement funds are used. This open-architecture plan allows for a much broader range of investment options, including real estate, private loans, tax liens, private businesses, precious metals, and even cryptocurrency. The plan also supports traditional market investments, so it’s not a matter of choosing one or the other. You can have both!
One of the key features of IRA Financial’s plan is “checkbook control.” Once the plan is set up, you can open a dedicated 401(k) bank account in the name of your plan. This gives you the ability to write checks or initiate wires directly for investments, without waiting for a custodian to approve or process transactions. For real estate professionals, private lenders, or anyone investing in time-sensitive opportunities, this direct access is a major advantage.
IRA Financial charges a flat one-time setup fee and a fixed annual maintenance fee, regardless of the size of your account or the number of investments you hold. This fee structure appeals to those with larger balances or multiple investments, especially when compared to providers who charge asset-based fees. And because there are no transaction or AUM (Assets Under Management) fees, your costs won’t increase just because your portfolio grows.
Contributions, Roth Options, and Loans: What’s the Same (and What’s Not)
Both the JP Morgan and IRA Financial Solo 401(k) plans adhere to the same IRS rules regarding contributions. For 2025, plan participants under age 50 can contribute up to $23,500 as an employee deferral. Those 50 or older can take advantage of an additional $7,500 in catch-up contributions, for a total of $31,000. In addition to the employee portion, the sponsoring business can make a profit-sharing contribution of up to 25% of compensation, with a combined maximum of $70,000 (or $77,500 for those age 50+). Beginning in 2025, there’s an increased catch-up contribution for those between the ages of 60 and 63 of $11,250. That increases the amount one can save to $34,750 and $81,250 respectively.
Both providers also offer the ability to make Roth contributions on the employee side, which allows your contributions to grow tax free. But IRA Financial takes it a step further by including an optional in-plan Roth conversion feature. This allows you to convert pretax funds within the plan to Roth at any time—giving you more control over your tax strategy. Plus, IRA Financial allows for the Mega Backdoor Roth Solo 401(k) strategy if you want to supercharge your after-tax savings.
Another area where the two plans differ is the loan feature. JP Morgan’s Solo 401(k) currently does not support participant loans. IRA Financial’s plan includes a loan option that allows you to borrow up to $50,000 or 50% of your plan balance, whichever is less, with repayment over a five-year term. For some business owners, this flexibility can be extremely helpful when managing cash flow or seizing opportunities.
Features and Plan Flexibility
| Feature | JP Morgan Solo 401(k) | IRA Financial Solo 401(k) |
| Roth Option | ✅ | ✅ |
| In-Plan Roth Conversion | ❌ | ✅ |
| Mega Backdoor Roth | ❌ | ✅ |
| Loan Provision | ❌ | ✅ |
| Prohibited Transaction Guidance | ❌ | ✅ |
| Alternative Asset Record-Keeping | ❌ | ✅ |
| Tax Reporting | Some | ✅ |
| IRS & DOL Audit Support | ❌ | ✅ |
Technology, User Experience, and Support
From a user experience standpoint, JP Morgan benefits from its sleek, modern brokerage platform and integrated mobile app. The interface is familiar, intuitive, and ideal for investors sticking to stocks and funds. However, it lacks the tools and infrastructure needed to manage alternative assets or complex transactions.
IRA Financial’s mobile platform is tailored to self-directed investors. Through its app and web portal, users can manage plan documents, initiate investments, track contributions, request loans, and even log real estate purchases. For cryptocurrency investors, they have IRAfi Crypto, a dedicated app for buying and selling more than 40 of the most popular cryptos like Bitcoin and Ethereum. While the user interface may not be as polished as a major brokerage’s, it’s built for function and flexibility—reflecting the needs of investors using their Solo 401(k)s beyond Wall Street.
Support is another key differentiator. JP Morgan offers general customer service for its accounts but does not provide specialized guidance on Solo 401(k) compliance, prohibited transactions, or complex tax questions. IRA Financial, on the other hand, specializes in retirement plans and offers support from CPAs, ERISA experts, and specialists who understand the intricacies of self-directed investing. This is especially important when dealing with real estate transactions, disqualified persons, or IRS reporting requirements.
Learn Why IRA Financial is the Better Choice for the Self-Employed!
- Review your Solo 401(k) plan options
- Learn about investing in alternative assets
- Get all of your questions answered
Who Should Choose Which Plan?
Choosing between JP Morgan and IRA Financial ultimately comes down to your investment strategy, comfort level, and need for control.
If you want a no-fuss, low-cost plan that allows you to invest exclusively in traditional assets through a familiar brokerage, JP Morgan’s Solo 401(k) is worth considering. It’s ideal for investors with relatively simple goals who value brand recognition and digital convenience.
However, if you’re looking for a retirement vehicle that can accommodate real estate, private equity, or crypto, and you want the ability to act quickly on investment opportunities without custodian delays, then IRA Financial offers far more versatility. For experienced investors and entrepreneurs who want to maximize their tax advantages while expanding beyond stocks and bonds, the Self-Directed Solo 401(k) with checkbook control is hard to beat.
Final Thoughts
JP Morgan’s entry into the Solo 401(k) space is a welcome addition for traditional investors who want a basic, affordable retirement plan. But for investors who think beyond the stock market, especially those in real estate or other alternative spaces, IRA Financial’s Solo 401(k) stands out as the more powerful and customizable solution.
With flexible plan design, alternative asset support, robust compliance tools, and flat, transparent pricing, IRA Financial gives business owners the tools they need to grow retirement wealth on their own terms. IRA Financial puts your retirement in your hands—not the bank’s.
Whether you’re just starting your solo business or looking to roll over funds into a more flexible vehicle, take the time to assess your goals—and choose the plan that aligns with your long-term vision.
