Are you a self-employed landscaper looking for ways to save for retirement and reduce your taxes? If you run your own landscaping business without any full-time employees (other than possibly your spouse), a Solo 401k might be worth looking into.
This retirement plan was designed for individuals who are both the owner and the only employee of their business. It offers high contribution limits, valuable tax benefits, and the ability to invest beyond just stocks and bonds.
Here’s what landscapers need to know before opening a Solo 401k in 2025.
📌 Also Read: What Is A Solo 401k? Rules, Eligibility, and FAQ for 2024 & 2025
Who Qualifies for a Solo 401k?
To qualify, your business must:
- Be self-employed or incorporated (such as an LLC or S corporation)
- Have no full-time W-2 employees, aside from yourself (and a spouse, if applicable)
As long as your landscaping business fits this profile, you’re generally eligible. It doesn’t matter whether you operate as a sole proprietor, file taxes under an LLC, or pay yourself through an S corp. Your role as both owner and active worker satisfies the eligibility requirements.
How Much Can You Contribute in 2025?
The Solo 401k lets you contribute to your retirement in two ways—as the employee and the employer. This dual structure allows you to set aside more money than traditional retirement plans like IRAs.
Employee Contribution
- You can contribute up to $23,500 of your net earnings (or W-2 wages if you run an S corp).
- If you’re age 50 or older, you can contribute an extra $7,500 in catch-up contributions, bringing the total to $31,000.
Employer Contribution
Your landscaping business can also make a profit-sharing contribution of up to:
- 20% of your net self-employment income (if you’re unincorporated)
- 25% of your W-2 wages (if you operate through an S corp)
Total Limit
- Combined employee and employer contributions are capped at $70,000 in 2025—or $77,500 if you’re 50 or older and eligible for catch-up contributions.
This high ceiling gives you more flexibility to save aggressively, especially during your peak earning years, which could be ideal for seasonal businesses like landscaping.
📌 Also Read: Important Forms for Solo 401k Owners
Can You Invest Beyond Stocks?
Yes. A Solo 401k can offer broader investment options than many traditional retirement plans. Depending on your provider, you may be able to invest in:
✅ Mutual funds and ETFs
✅ Individual stocks and bonds
✅ Real estate
✅ Private placements
✅ Precious metals
✅ Cryptocurrency (allowed, but risky and subject to IRS rules)
Just be mindful of IRS prohibited transactions. For example, you can’t use your Solo 401k to buy land and then use it for your landscaping business or personal purposes. Every investment must benefit only the retirement plan, not you or any related parties directly.
Can You Use a Solo 401k if You Also Work a Job?
Yes, but with limits. If you also have a second job that offers a 401k, your employee contribution limit of $23,500 (or $31,000 if age 50+) applies across all 401k plans combined.
However, the employer contributions made by your landscaping business to your Solo 401k do not count against your day job’s limit.
✏️ Hypothetical Example: If you contribute $10,000 to your employer’s 401k, you could still contribute the remaining $13,500 (or $21,000 if age 50+) as an employee to your Solo 401k. Plus, your business can make its own employer contribution, up to the total plan limit.
How to Open a Solo 401k as a Landscaper
Setting up a Solo 401k is easier than you might think. Here’s what the process usually involves:
- Choose a Solo 401k provider – Look for one that fits your priorities, whether that’s low fees, Roth options, or alternative investments like real estate.
- Decide between traditional or Roth – A traditional Solo 401k offers tax deductions now, while a Roth version lets your money grow tax-free for retirement.
- Apply before year-end – To make contributions for the 2025 tax year, your plan must be established by December 31, 2025, even if you fund it later (as late as your tax filing deadline).
- Start contributing – Fund your Solo 401k using income from your landscaping work, up to the annual IRS limits.
Final Thoughts
A Solo 401k can be a powerful retirement savings tool for self-employed landscapers. It offers the potential for significant tax savings and retirement growth — without the complexity of larger plans. As long as you don’t have full-time employees, this plan gives you room to save more, invest on your terms, and take control of your financial future.
If you’re comparing providers or wondering how a Solo 401k fits into your business strategy, it’s a good idea to evaluate your income structure, consider your retirement goals, and choose a provider that aligns with your needs.
📌 Want to explore more topics like this, check out our other articles for self-employed business owners.
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