Running a YouTube channel can be more than just posting videos. If your channel earns money—whether from ads, sponsorships, merchandise, or memberships—you may be operating a small business. If you don’t have full-time employees, a Solo 401k might be a smart way to save for retirement.

Open a Solo 401k with Carry
Looking to Open a Solo 401k 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 STARTED

Solo 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.

This retirement plan is made for self-employed people. It offers high contribution limits and tax benefits. It also gives you control over your investments.

📌 Also Read: How to Set Up A Solo 401k Plan

Table of contents

Who Qualifies for a Solo 401k?

The Solo 401k is also known as a one-participant 401k. It’s designed for business owners who don’t have full-time employees. If you’re the only person working in your YouTube business, you likely qualify.

✅ You Must Earn Self-Employment Income

Income from YouTube ads, brand deals, Patreon, or digital products typically counts as self-employment income.

  • Sole proprietors usually report this income on Schedule C.
  • If you have an S corporation, you must pay yourself a salary and report it as W-2 wages.

✅ You Must Not Hire Full-Time Workers

You can’t have full-time employees, which the IRS defines as individuals working over 1,000 hours in a year. Your spouse can help with editing or admin tasks. That doesn’t disqualify your plan.

✅ Any Business Structure Works

You can qualify as a sole proprietor, LLC, partnership, or S corp. The key requirement is that you work alone or only with your spouse.

📝 Note: Hiring a full-time editor later on would mean switching to a different plan that covers employees.

📌 Also Read: Important Forms for Solo 401k Owners

What You’ll Need Before Opening a Plan

You don’t need a fancy setup, but there are a few things to prepare.

✅ Income Records
Track what you earn after expenses. Or your W-2 salary if you’re incorporated. Your contribution limit is based on this income.

✅ Spouse Participation (Optional)
If your spouse helps run the channel, they may contribute to the plan under their own account.

✅ Business Activity
You don’t need to form an LLC, but your YouTube channel must be operated as a real business. That includes properly reporting income and filing taxes.

Why the Solo 401k Can Work for YouTubers

YouTube income can be unpredictable. A Solo 401k is one of the few plans that scales with what you earn. It gives you tax flexibility and high contribution potential.

Contribution Limits for 2025

You can contribute in two ways—as the employee and the employer.

  • Employee contribution: Up to $23,500
    • Catch-up if age 50 or older: Add $7,500
    • Special catch-up for ages 60–63: Add $11,250
  • Employer contribution: Up to 25 percent of compensation
  • Combined total: Up to $70,000 or up to $81,250 with catch-ups

📝 Note: Your exact limit depends on how your business is structured. Key terms include net income, net adjusted income, and gross income after deductions.

Traditional or Roth Options

You can choose how your contributions are taxed.

  • Traditional contributions reduce your income today. You pay taxes later in retirement.
  • Roth contributions are taxed now. Withdrawals later may be tax-free if qualified.

Many Solo 401k providers allow you to split between Traditional and Roth accounts.

You Control Your Investments

You get to choose where the money goes. Most plans allow:

  • Mutual funds
  • Index funds
  • Individual stocks
  • Private placements or alternative assets (in some cases) 

Benefits and Responsibilities

Being self-employed means you run the plan and also benefit from it. Here’s what to expect.

What You Gain

  • Higher contribution limits than IRAs or SEP IRAs
  • Option to choose Traditional or Roth tax treatment
  • Full investment control
  • Spouse eligibility, if they work in the business

What You Manage

  • File Form 5500-EZ if the plan reaches over $250,000
  • Switch to a regular 401k if you hire full-time help
  • Keep records of contributions and plan activity

📝 Tip: Working with a tax pro can help you stay on track and avoid mistakes.

📌 Also Read: Solo 401k Vs SEP IRA

Wrapping It Up

If your YouTube income is reported as self-employment income and you don’t have employees, the Solo 401k is worth considering. Just make sure your channel is set up as a legitimate business and track your earnings properly. Consider getting help from a professional to set up your plan the right way.

📌 Want more tips on managing money as a creator? Read:

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.

To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form ADV Part 2A brochure and Form CRS or through the SEC’s website at www.adviserinfo.sec.gov.