Thinking about retirement while growing your fitness business? If you’re a personal trainer working for yourself — whether in a private gym, from home, or online — you might be wondering how to build long-term savings on your own terms.
A Solo 401k could be a flexible and tax-efficient option, especially if you don’t have full-time employees. Here’s what personal trainers need to know about how this plan works and what it could offer in 2025.
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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.
What Is a Solo 401k?
A Solo 401k is a type of retirement plan designed specifically for self-employed individuals with no employees. It offers the same tax benefits and high contribution potential as a traditional employer 401k, but it’s set up and controlled entirely by you.
As a personal trainer, you wear both hats: the employer and the employee. That dual role allows you to contribute in both capacities, giving you more room to save for retirement.
Do Personal Trainers Qualify?
Yes, many personal trainers can qualify for a Solo 401k if:
✅ They’re earning self-employment income (such as 1099 payments, business profits, or income through your LLC or S corp).
✅ They don’t have any employees, other than possibly a spouse.
If you’re a personal trainer, you don’t generally need to be incorporated to qualify. Even trainers operating under their own name as a sole proprietor can set up a Solo 401k. The key is that you must be self-employed and actively generating earned income from your fitness work.
📝 Note: If you hire employees who work over 1,000 hours per year, or meet the 500-hour rule under SECURE 2.0, you may need to switch to a different type of retirement plan.
How Much Can You Contribute in 2025?
Solo 401k plans allow for high contribution limits, combining both employee and employer contributions.
Employee Contributions
As the “employee,” you can contribute up to $23,500 of your self-employment income in 2025. If you’re age 50 or older, you can also add a $7,500 catch-up contribution, bringing the total employee deferral to $31,000.
Employer Contributions
As the “employer,” you can also contribute:
- Up to 20 percent of your net self-employment income if you’re a sole proprietor or single-member LLC
- Up to 25 percent of your W-2 wages if your business is taxed as an S corporation
These employer contributions are tax-deductible for the business.
Total Contribution Limit
For 2025, the combined total of employee and employer contributions is capped at $70,000, or $77,500 if you’re age 50 or older.
📌 Also Read: Important Forms for Solo 401k Owners
Tax Benefits of a Solo 401k
Solo 401k plans can be set up as either Traditional (pre-tax) or Roth (after-tax), depending on your financial strategy.
- Traditional Solo 401k: Contributions reduce your taxable income in the year you make them, which may lower your current tax bill.
- Roth Solo 401k: Contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free.
You can even split your contributions between traditional and Roth, if your plan provider allows.
Why Personal Trainers Might Consider One
Here’s why many independent personal trainers choose a Solo 401k:
✅ Higher contribution limits than IRAs
✅ Option to deduct contributions as a business expense
✅ Potential Roth component for tax-free retirement income
✅ No annual filing requirement until plan assets exceed $250,000
✅ You control the investments, setup, and management
If you’re looking to build long-term savings while maintaining tax flexibility, a Solo 401k offers a practical path forward, especially if your business income is growing.
How to Set Up a Solo 401k
Setting up a Solo 401k typically involves:
- Choosing a provider that supports self-employed plans
- Filling out the plan documents (many platforms offer this online)
- Getting an EIN (Employer Identification Number) if you don’t already have one
- Opening an account and making contributions
- Keeping records for future tax filings
Some platforms also support Roth contributions and allow for alternative investments, such as ETFs or real estate, depending on your preferences.
📝 Note: If you want to make employee deferrals for 2025, your Solo 401k must be opened by December 31, 2025.
Final Thoughts for Personal Trainers
If you’re a self-employed personal trainer without employees, a Solo 401k could be a strong tool to help you build long-term savings while also reducing your current tax burden. You’ll have greater flexibility in how you save, more control over your investment choices, and the ability to optimize your tax strategy as your business grows.
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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