If you work as a marketing consultant and run your own business—even as a one-person operation—you may be eligible for a retirement plan designed specifically for self-employed professionals: the Solo 401k.
This type of plan offers high contribution limits, Roth options, and flexible investment choices. But not every business qualifies. So let’s take a closer look at whether a marketing consultant like you can open a Solo 401k and what it could mean for your long-term financial plan.
Looking to Open a Solo 401k Plan?
Get started today with just a few clicks – The Carry Solo 401k Plan is a featured-packed self-directed account that lets you invest in both traditional and alternative assets, take out a loan, or do a Mega Backdoor Roth conversion with a few clicks.
GET STARTEDSolo 401(k) eligibility and contribution limits depend on IRS rules. Carry does not provide tax advice, consult a tax advisor. Carry Advisors LLC, an SEC-registered investment adviser, provides investment advisory services for discretionary and non-discretionary accounts (e.g., Solo 401(k), IRA, taxable brokerage accounts). Bank and trust accounts are not advised by Carry Advisors. Brokerage accounts are introduced by Global Carry LLC and carried by DriveWealth LLC, both members FINRA/SIPC. Advisory fees may apply and additional disclosures are described in our Form ADV and CRS.
Who Qualifies for a Solo 401k?
To open a Solo 401k, your business must meet two basic IRS requirements:
- You must have self-employment income.
This can include income earned as a sole proprietor, single-member LLC, S corp owner, or freelancer. - You must have no full-time employees.
You can still hire your spouse and work with independent contractors. But if you have any full-time W-2 employees (other than your spouse), your business is not eligible for a Solo 401k.
📝 Note: “Full-time” means working 1,000 hours or more per year or 500 hours in three consecutive years under the SECURE 2.0 rule.
If you’re running your marketing consulting business on your own (or with a spouse), and you generate self-employment income, you likely meet the qualifications.
Why Marketing Consultants Consider a Solo 401k
Marketing consultants often earn variable income—depending on clients, contracts, and project cycles. A Solo 401k offers the kind of flexibility and tax benefits that help you make the most of your earnings.
Here’s what makes it appealing:
✅ Higher contribution limits: In 2025, you can contribute up to $70,000 (or $77,500 if age 50 or older), depending on your income.
✅ Pre-tax or Roth options: Solo 401ks can be set up to allow traditional (pre-tax) and/or Roth (after-tax) contributions.
✅ Wide investment access: Depending on your provider, you can invest in mutual funds, ETFs, index funds, or even alternative assets like REITs.
✅ Spouse contributions: If your spouse works in your consulting business, they can also contribute, potentially doubling your household’s savings.
📌 Also Read: Important Forms for Solo 401k Owners
How Contributions Work (2025)
You can contribute to a Solo 401k in two roles: employee and employer.
- Employee Contribution
- You can defer up to $23,500 of your net earnings (or W-2 wages from your S corp).
- If you’re 50 or older, you can add a $7,500 catch-up, for a total of $31,000.
- Employer Contribution
- You can contribute up to 20 percent of net self-employment income (or 25 percent of W-2 wages if your business is an S corp).
- Combined contributions (employee + employer) are capped at $70,000 for 2025—or $77,500 with catch-up.
📝 Note: Your exact contribution amount depends on your business structure and net earnings after expenses. If you’re unsure, it’s best to work with a tax professional.
📌 Also Read: What Are the Different Types of Business Entities?
Setting Up a Solo 401k as a Marketing Consultant
Opening a Solo 401k can be straightforward once you confirm eligibility. Here’s a general outline of the steps:
- Choose a provider.
Compare costs, features, and investment access. Some providers offer Roth and alternative investment options; others are more limited. - Complete a plan application.
This typically includes basic business information and how you want to structure your plan. - Apply for an EIN (if you don’t have one yet).
Even sole proprietors can apply for an Employer Identification Number for free at the IRS. - Fund the account before deadlines.
- Employee deferrals must be elected by December 31, 2025.
- Employer contributions can be made up to April 15, 2026 (or later if you file an extension).
📝 Note: If you’re starting a new plan for 2025, it must be established by December 31 to make employee contributions. This rule applies regardless of income timing.
What If You Scale and Hire?
A Solo 401k only works if you remain a solo business with no full-time W-2 employees (aside from your spouse). If you plan to grow and build a team, you may eventually need to switch to a SEP IRA, SIMPLE IRA, or a Traditional 401k plan with broader coverage.
Until then, the Solo 401k can be a tax-efficient way to save for retirement during your solo years.
Wrapping It Up
If you run your own consulting business, a Solo 401k could give you the structure and tax benefits of a traditional employer-sponsored retirement plan without the overhead. As long as you don’t have full-time employees, it’s worth exploring.
📌 Want to learn more about Solo 401k contributions, deadlines, and tax rules for small business owners? Check out:
Disclaimer:
The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.
The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.
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