SOLO 401(k) Plan Advisors - Virginia, Maryland, Washington, DC, Georgia

Solo 401(k) Plan Consultants

If you are self-employed or a small business owner with no full-time employees, an Individual 401(k) plan, also known as a Solo 401(k), can be a powerful tool for retirement savings. However, it’s essential to understand the contribution rules and limits for calendar year 2026 to make the most of your plan.


Key Rules for Solo 401(k) Contributions



The total contributions to an Individual 401(k) cannot exceed the self-employment compensation earned by the plan participant. This rule ensures that your contributions align with your income and meet IRS regulations.


A solo 401(k) is an exceptional retirement savings vehicle tailored for self-employed individuals and business owners, allowing them to contribute significantly more than a traditional 401(k).


In contrast to traditional or safe harbor 401(k) plans, self-employed business owners can make both employee and employer profit sharing contributions, dramatically boosting your retirement savings potential.


  • Disregarded Entity or Single Member LLC (SMLLC) can contribute a profit share of up to 20% of net profit from Schedule C (after deducting ½ self-employment tax)


  • S-Corporation or LLC Taxed as an S-Corp: Employer Profit share can be up to 25% of your W-2 wages (Box 1)


Total combined limit (Year 2026): Employee deferrals plus employer contributions (e.g., matching or profit-sharing) cannot exceed $72,000 (or 100% of your compensation, whichever is less). The compensation cap for these calculations is $360,000.


Solo 401(k) for self-employed (Year 2026): As both employee and employer, you can defer up to $24,500 personally, plus contribute up to 25% of your net self-employment income as the employer (subject to the overall $72,000 total limit).


At Glover Park Wealth, our retirement plan consultants specialize in helping you navigate these opportunities to maximize your Individual 401(k) contributions to reduce your taxable income and save more for retirement.


Our firm has extensive experience in managing solo 401(k) and/or Individual 401(k) plans, schedule a consultation today.


Glover Park Wealth Management, LLC is a registered investment adviser (RIA) with the SEC and licensed to offer investment advice in all 50 states. 


Our office is located in Arlington, Virginia. We have clients in Maryland, Washington, DC, Georgia and several other states.

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Common solo 401(k) plan questions


Have a question regarding a Solo 401(k)? Contact us.


  • What is an Individual 401(k) Plan?

    An Individual 401(k), also known as a Solo 401(k), is a retirement savings plan tailored for self-employed individuals and small business owners with no full-time employees other than a spouse. This plan offers higher contribution limits and tax advantages compared to traditional retirement accounts.

  • Who is eligible for an Solo 401(k)?

    Eligibility for an Individual 401(k) is limited to self-employed individuals or small business owners without full-time employees, except for a spouse who is employed by the business.

  • What are the contribution limits for a Solo 401(k) in 2025?

    In 2025, the total contribution limit for an Individual 401(k) is $70,000 for individuals under 50. This includes:

    • Employee Salary Deferrals: Up to $23,500 or 100% of compensation, whichever is less.
    • Employer Contributions: Up to 25% of compensation.

    For individuals aged 50 to 59 or 64 and older, an additional catch-up contribution of $7,500 is allowed, bringing the total limit to $77,500. Notably, for those aged 60 to 63, the catch-up contribution increases to $11,250, allowing a total contribution of $81,250. 

  • How are contributions calculated for self-employed individuals?

    For self-employed individuals, contributions are based on net earnings from self-employment after deducting one-half of self-employment tax and contributions for yourself. It's advisable to consult IRS guidelines or a tax professional for precise calculations. 

  • What are the tax advantages of an Individual 401(k)?

    Contributions to a traditional Individual 401(k) are made pre-tax, reducing your taxable income for the year. The investments then grow tax-deferred until withdrawal during retirement. Alternatively, if your plan offers a Roth option, contributions are made post-tax, but qualified withdrawals during retirement are tax-free.

  • Can I have other retirement plans in addition to an Individual 401(k)?

    Yes, you can contribute to other retirement plans, such as IRAs, in addition to your Individual 401(k). However, the total contributions must adhere to IRS limits, and contributions to multiple plans may affect your overall contribution limits. It's important to ensure compliance with IRS regulations when contributing to multiple retirement accounts.

  • When are the contribution deadlines for the 2025 tax year?

    Employee salary deferrals for 2025 should generally be made by December 31, 2025. Employer contributions can be made up until the business's tax filing deadline, including extensions. For sole proprietors and single-member LLCs, this is typically April 15, 2026, unless an extension is filed.