Roth 401(k)
Is a Solo 401(k) Roth Employer Contribution Tax Deductible?
Thanks to the SECURE Act 2.0, which became law in December 2022, Solo 401(k) employer profit-sharing contributions can now be…
Why Choose Us as Your Roth Solo 401(k) Provider?
IRA Financial is a specialized Roth Solo 401(k) provider. When you select us to manage your Roth Solo 401(k), you’ll benefit from personalized support, straightforward pricing, and a smooth setup process—making it simple to build tax-free retirement wealth on your terms.
No Hidden Fees
Flat, transparent pricing with no asset-based costs.
Expert Support
Live chat available 8AM–6PM Central Time.
Checkbook Control
Invest directly, without the need for custodian approval.
24,000+ Clients
Proudly serving over 24,000 clients across all 50 states.
Industry Expertise
Led by Roth Solo 401(k) specialists.
Dedicated Focus
100% Self-Directed Retirement solutions.
Why IRA Financial Is a Top Roth Solo 401(k) Provider
Thousands of self-employed professionals choose IRA Financial for their Roth Solo 401(k). Here’s why we’re trusted by over 24,000 clients nationwide:
- Industry-leading expertise in self-directed retirement plans
- Dedicated Roth Solo 401(k) specialists
- Transparent, flat-fee pricing — no hidden custodial charges
- Full alternative investment access (real estate, crypto, etc.)
- No transaction fees, ever
Whether you’re comparing providers or just starting your research, IRA Financial offers unmatched value, compliance support, and personal service.
Roth Solo 401(k)
- Best plan for self-employed individuals
- Invest in almost everything you want
- Checkbook Control – serve as your own trustee
- Maximize tax deductions (up to $77,500)
- Borrow up to $50,000 tax free!
- Mega Backdoor Roth option included
- No transaction or asset value fees
- Guaranteed IRS audit protection
Pricing Details
$999
setup fee
$399
annually
How to Open a Roth Solo 401(k) Plan
Opening a Roth Solo 401(k) account should be straightforward. Follow these steps to set up your plan and start investing.
The Benefits of a Roth Solo 401(k)
Superior tax advantages
Superior tax advantages
Contributions are made with after-tax dollars, allowing your investments to grow completely tax-free. You pay taxes now, but your qualified withdrawals in retirement are entirely tax-free.
Ability to borrow funds
Ability to borrow funds
Gain flexible access to your retirement savings by borrowing up to $50,000 (or 50% of your account balance, whichever is lower) without taxes or penalties, providing a convenient source of liquidity if needed.
Higher contribution limits
Higher contribution limits
Up to $23,000 employee deferral (or $30,500 if age 50+); plus employer contribution up to combined $70,000 (or $77,500 if 50+)
Broader investment choices
Broader investment choices
Diversify beyond conventional investments like stocks and bonds into alternative assets, including real estate, private equity, cryptocurrency, precious metals, and more, enhancing your potential for wealth accumulation.
Direct investment control
Direct investment control
Make direct investment decisions without needing brokerage or custodian approval. With full checkbook control, you have ultimate authority to manage your Roth Solo 401(k) investments efficiently and independently.
Creditor protection
Creditor protection
Funds within your Solo 401(k) receive strong federal creditor protection under ERISA, providing greater security for your retirement savings compared to many other investment accounts.
Who Is Eligible for a Roth Solo 401(k)?
Many Roth Solo 401(k) providers charge asset-based fees, restrict your investment options, or require custodian approvals for transactions. We offer a straightforward, flat-fee plan that gives you complete investment flexibility and direct access to your retirement funds.
A Roth Solo 401(k) is designed for:
- Self-employed individuals with no full-time employees (other than a spouse)
- Freelancers, contractors, consultants, and small business owners
- Individuals with side income from a sole proprietorship or single-member LLC
You can open a Roth Solo 401(k) on your own if you earn 1099 or self-employed income. It’s a great fit for anyone looking to build tax-free retirement wealth with full control and high contribution limits.
- You don’t need an LLC or corporation to qualify
- No income limits or age restrictions
- Combine it with a Traditional Solo 401(k) if needed
Our Roth Solo 401(k) vs Other Providers
Many Roth Solo 401(k) providers charge asset-based fees, restrict your investment options, or require custodian approvals for transactions. We offer a straightforward, flat-fee plan that gives you complete investment flexibility and direct access to your retirement funds.
| IRA Financial | Other Providers | |
|---|---|---|
| Flat Annual Fee | Yes | No |
| $0 Account & Transaction Fees | Yes | No |
| $0 Admin & Processing Fees | Yes | No |
| Expert-Guided Investments | Yes | No |
| Guaranteed IRS Audit Protection | Yes | Yes |
| Annual Tax Consulting | Yes | No |
| Annual Reporting & Filing Service | Yes | No |
Book a Consultation
Schedule a free consultation with a member of our team to explore how opening a self-directed retirement account can unlock your ability to invest tax-free in a variety of alternative assets.
See What Our Clients Have to Say
What Alternative Assets Can You Invest in with a Roth Solo 410(k) Plan?
A Roth Solo 401(k) plan provides flexibility to invest beyond traditional assets like stocks and mutual funds, unlocking opportunities in alternative investments with greater potential for diversification and growth.
Real Estate
Residential, commercial, raw land, and rental properties.
Cryptocurrency
Bitcoin, Ethereum, and other digital assets.
Precious Metals
Gold, silver, and other IRS-approved metals.
Tax Liens & Deeds
Acquire property liens for potential returns.
Private Equity
Invest in startups, private companies, and venture capital.
Private Placements
Invest in a non-public company through the sale of securities.
Roth Solo 401(k) or Roth IRA: Which One Should You Choose?
| Feature | Roth Solo 401(k) | Roth IRA |
|---|---|---|
| Contribution limit (2025) | Up to $70,000 ($77,5000 if age 50+) | $7,000 ($8,000 if age 50+) |
| Self-employed eligibility | ✅ Yes (required) | ✅ Yes |
| Tax-free withdrawals | ✅ Yes (after 59½ + 5 years) | ✅ Yes (after 59½ + 5 years) |
| Loan option | ✅ Yes (up to $50,000) | ❌ No |
| Income limit to contribute | ❌ None | ✅ Yes (phases out) |
Which is better? If you’re self-employed and want higher contributions, the Roth Solo 401(k) gives you more tax-free growth potential and flexibility.
Roth Solo 401(k) FAQs
Below are the answers to common Roth Solo 401(k) questions covering eligibility, contributions, investment flexibility, and tax advantages.
What is a Roth Solo 401(k)?
A Roth Solo 401(k) is a retirement plan specifically designed for self-employed individuals and business owners with no full-time employees.
- Contribute up to $70,000 in 2025 (or $77,500 if 50+). Roth contributions grow tax-free, and qualified withdrawals in retirement are also without tax.
- Optional loan feature: Borrow up to $50,000 or 50% of the account balance without taxes or penalties.
- Self-directed plans offer checkbook control for direct investing beyond traditional assets.
What is the Roth option in a Solo 401(k)?
The Roth Solo 401(k) allows you to make after-tax contributions that grow tax-free; ideal if you expect to be in a higher tax bracket later.
What’s the difference between a Roth Solo 401(k) and a Roth IRA?
There are a few differences between a Roth Solo 401(k) and a Roth IRA
- A Roth IRA, on the other hand, has lower contribution limits $7,000 (or $8,000 if 50+), does not permit loans, and is unavailable to high earners.
- A Roth Solo 401(k) offers significantly higher contribution limits compared to a Roth IRA. It also provides the option to borrow funds and there are no income restrictions.
Who is eligible for a Roth Solo 401(k)?
To qualify for a Roth Solo 401(k), you must:
- Generate self-employment income (from freelancing, contracting, small business activities, etc.).
- Be self-employed or operate a business with no full-time employees (other than yourself or your spouse).
What are the contribution limits of a Roth Solo 401(k)?
For 2025, the total contribution limit is:
- Up to $70,500 annually (if under age 50).
- Up to $77,500 annually (if age 50 or older).
This limit includes employee elective deferrals (up to $23,000/$30,000) plus employer profit-sharing contributions (up to 25% of compensation) up to the annual limit.
What can I invest in with a Roth Solo 401(k)?
With a Roth Solo 401(k) you can invest it:
- Real Estate – Buy rental properties, raw land, or commercial real estate.
- Cryptocurrency – Invest in Bitcoin, Ethereum, and other digital assets
- Private Equity – Fund startups, private businesses, or venture capital
- Tax Liens & Deeds – Purchase tax lien certificates for potential returns.
- Precious Metals – Buy IRS-approved gold, silver, and platinum.
Prohibited investments include collectibles and transactions involving disqualified persons (e.g., yourself or immediate family).
Can I combine traditional and Roth Solo 401(k) contributions?
Yes. You can split your contributions between pre-tax and Roth, depending on your tax planning strategy.
Can I take a loan from my Roth Solo 401(k)?
Yes! A Roth Solo 401(k) loan allows you to borrow:
- Up to $50,000 or 50% of your account balance (whichever is lower).
- Funds are tax- and penalty-free.
- Loans must be repaid within five years.
This is a significant advantage over IRAs, which do not permit standard loans.
Do Roth Solo 401(k) plans have Required Minimum Distributions (RMDs)?
Beginning in 2024, thanks to the SECURE Act 2.0, the RMD rules have changed. Roth Solo 401(k) accounts are no longer required to take RMDs during the account owner’s lifetime. This rule mirrors how Roth IRAs work.
Is a Roth Solo 401(k) good for side income?
Absolutely. Even part-time freelancers or consultants can open a Roth Solo 401(k) based on 1099 or self-employment income.
Ready to plan for your future?
Take control of your retirement by investing in alternative assets like real estate, cryptocurrency, businesses, and more. Start creating wealth today by opening an account.
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