E*TRADE Solo 401k Review (2025): Features, Pricing, Pros and Cons

Being your own boss offers freedom—but also comes with the responsibility of planning for retirement without the benefit of an employer-sponsored 401k.

If you’re self-employed, even part-time, the E*TRADE Solo 401k could be worth considering. It’s designed for business owners with no full-time employees, including freelancers, consultants, and side hustlers. E*TRADE provides access to a wide range of investments and does not charge setup or annual maintenance fees, which may appeal to cost-conscious savers.

But how does it actually work in 2025 — and is it a good fit for your situation?

This article provides a breakdown of E*TRADE’s Solo 401k features, pricing, and investment options. We’ll also cover who it’s best for, how it compares to other providers, and what to consider before opening one.

📌 Also Read: What Is A Solo 401k? Rules, Eligibility, and FAQ for 2024 & 2025

E*TRADE Solo 401k Features 

Plan Types

✅ Traditional Solo 401k: Contributions are made with pre-tax dollars, potentially reducing your taxable income for the year. Taxes are due upon withdrawal in retirement.

✅ Roth Solo 401k: Contributions are made with after-tax dollars. Qualified withdrawals, including earnings, are tax-free, provided certain conditions are met.

Loan Option

✅ Loan Amount: Up to 50% of the account balance, not to exceed $50,000.

✅ Repayment Terms: Must be repaid within five years, with payments at least quarterly.

✅ Interest Rate: Generally set at the prime rate + 1 percent.

Rollovers and Transfers

✅ Accepts incoming rollovers from Traditional IRA, SEP IRA, SIMPLE IRA (after two years), and most workplace retirement plans

✅ Supports both direct and indirect rollovers, subject to IRS rules

Account Access

✅ Fully online account management through E*TRADE’s platform

✅ Includes access to a broad range of traditional investments (stocks, mutual funds, ETFs, and bonds)

✅ Customer service available for platform support (not for tax or investment advice)

📌 Also Read: E*TRADE Individual 401(k) Plan for Self Employed

2025 Solo 401k Contribution Limits at a Glance

E*TRADE’s Solo 401k follows IRS guidelines. In 2025, individuals can contribute as both the employee and the employer, allowing for higher contribution potential compared to some other retirement plans.

Employee Contributions (Elective Deferrals)

✅ Up to $23,500 or 100% of compensation, whichever is less.

✅ Additional $7,500 catch-up contribution if you’re age 50 or older, for a total of $31,000.

Employer Contributions

✅ Up to 25% of net adjusted income for incorporated businesses or net earnings for sole proprietors

✅ Combined employee and employer contributions cannot exceed $70,000

📝 Important Notes

What You Can Invest In With E*TRADE Solo 401k

E*TRADE provides access to standard brokerage investments within its Solo 401k platform:

✅ Stocks — U.S.-listed companies across various sectors
✅ ETFs — Low-cost index funds and sector-specific options
✅ Mutual Funds — A wide selection, including no-load and no-transaction-fee funds
✅ Bonds and CDs — Corporate, municipal, and U.S. Treasury bonds
✅ Options — Available if your account is approved for options trading

E*TRADE also gives you access to professional-grade research tools. You can use screeners, compare fund performance, and track markets with real-time data — all within the same dashboard where you manage your Solo 401k.

❌ What You Can’t Invest In

E*TRADE does not support direct investments in real estate, private equity, cryptocurrencies, or precious metals inside its Solo 401k. If these asset types are essential to your strategy, consider a self-directed Solo 401k provider instead.

E*TRADE Solo 401k Fees and Pricing (2025 Update)

✅ No Setup or Annual Maintenance Fees

E*TRADE does not charge to open or maintain a Solo 401k account. This makes it a cost-effective option for self-employed individuals who want to minimize ongoing account expenses.

✅ $0 Commissions on Online Stock and ETF Trades

You can trade US-listed stocks and ETFs online without commission fees, which helps reduce investment costs over time.

✅ Low Options Trading Costs

Options trades typically cost $0.65 per contract. If you trade frequently (30+ trades per quarter), that rate drops to $0.50 per contract. This could be helpful if you use options in your retirement strategy.

✅ Bond and Mutual Fund Fees May Apply

Bond trades carry a $1 per bond fee (with a $10 minimum). Mutual funds are available with no transaction fees, but you’ll still need to consider fund-specific expenses listed in each fund’s prospectus.

❗ Potential Additional Fees

📌 Also Read: E*Trade Pricing and Rates

E*TRADE Solo 401k Pros and Cons 

The E*TRADE Solo 401k has a mix of practical features and limitations to weigh. Here’s a quick look at what works well — and where it may fall short — so you can decide if it’s a good fit for your goals.

Pros

✅ Wide Range of Investment Options
E*TRADE gives account holders access to a broad selection of investments, including stocks, ETFs, mutual funds, and bonds. This flexibility can be helpful for those who want to build a diversified portfolio based on their own preferences and risk tolerance.

✅ No Setup or Annual Maintenance Fees
There’s no cost to open or maintain a Solo 401k at E*TRADE, which may appeal to those who prefer to avoid recurring account fees.

✅ Loan Option Available
Participants may borrow up to 50 percent of their vested balance (up to $50,000), which can be useful for short-term liquidity needs—though it’s worth noting that any loan must follow repayment rules to avoid tax penalties.

✅ Traditional and Roth Contributions Supported
E*TRADE supports both traditional (pre-tax) and Roth (after-tax) contributions. This allows for flexibility when planning for current tax savings or future tax-free withdrawals, depending on your income strategy.

📌 See what E*TRADE offers for Solo 401k plans here.

Cons

❌ No Checkbook Control
Unlike some self-directed Solo 401k providers, E*TRADE doesn’t offer checkbook control. This means you can’t write checks directly from your 401k to invest in time-sensitive opportunities like real estate or private deals.

❌ Limited Access to Alternative Assets
The platform is focused on traditional investment products. If you’re looking to invest in real estate, private equity, or other non-traditional assets, E*TRADE may not support those options.

❌ Platform Experience
Some users report that E*TRADE’s interface is less intuitive than other newer platforms. While it gets the job done, managing your account or navigating tools might feel a bit clunky.

How E*TRADE Compares to Other Solo 401k Providers

If you’re looking for more options beyond E*TRADE, here are a few Solo 401k providers that are also worth considering. Fidelity, Schwab, and Carry each offer something different depending on what you need — whether it’s low fees, flexible investment choices, or added support for advanced strategies.

Take a look at how they compare side by side. This can help you figure out which one fits your goals best and how to manage your retirement plan.

Summary Comparison Table

Feature	E*TRADE	Fidelity	Charles Schwab	Carry (Pro Plan)
Setup Fee	$0	$0	$0	$0
Annual Maintenance Fee	$0	$0	$0	$499/year
Investment Options	Traditional assets	Broad selection	Broad selection	Traditional + alternative assets
Roth Contributions	Yes	Yes	Yes	Yes
Loan Availability	Yes	No	Yes	Yes
Mega Backdoor Roth	No	No	No	Yes

📝 Note: Always verify current details and features directly with the provider. Plan details may change and vary depending on the plan level you choose.

Fidelity Solo 401k 

Fidelity offers a simple and low-cost Solo 401k, but it lacks some features like loans. It may appeal to investors who want access to low-cost mutual funds and prefer managing everything themselves.

✅ No setup or maintenance fees
✅ Broad investment options, including non-Fidelity mutual funds
✅ Traditional and Roth contributions supported
❌ No loan or hardship withdrawal options
❌ Mega Backdoor Roth not supported

📌 Also Read: Fidelity Self-Employed 401k Plan

Charles Schwab Solo 401k 

Schwab’s Solo 401k is similar to E*TRADE’s, with no ongoing fees and access to a full brokerage platform. It also allows loans and Roth contributions.

✅ No setup or annual fees
✅ Wide range of investment options
✅ Traditional and Roth contributions supported
✅ Loans permitted
❌ Does not support Mega Backdoor Roth

📌 Also Read: Schwab Individual 401k Plan

Carry Solo 401k (Pro Plan) Highlights

Carry is a digital-first platform built for self-employed professionals. While it charges an annual fee, it supports advanced features like automated Mega Backdoor Roth contributions and access to alternative investments—features not typically offered by brokerages.

✅ Supports traditional, Roth, and Mega Backdoor Roth
✅ Allows participant loans
✅ Supports real estate, private equity, and other alternative assets (Pro Plan)
✅ Designed to simplify Solo 401k compliance and recordkeeping
❌ Annual fee applies: $499/year for Pro Plan
❌ Limited to Carry’s supported investment options (no crypto)

📌 Also Read: Carry Solo 401k Plans

Final Thoughts: Is E*TRADE Solo 401k Worth It in 2025?

The E*TRADE Solo 401k may be a strong fit for self-employed individuals who want a low-cost, flexible retirement plan with access to a wide range of traditional investments. It’s especially useful for freelancers, consultants, and small business owners who are comfortable managing their own portfolio and don’t need advanced features like alternative asset investing or Mega Backdoor Roth support.

What makes E*TRADE stand out:

✅ No setup or annual maintenance fees

✅ Access to a user-friendly trading platform

✅ Option to take loans from the plan (up to $50,000 or 50 percent of account balance)

✅ Supports both traditional and Roth contributions for tax planning flexibility

However, if you’re looking for more hands-on support, access to alternative investments, or automated strategies like the Mega Backdoor Roth, you may want to explore other platforms like Carry.

Choosing a Solo 401k provider often depends on your preferred level of control, the types of assets you plan to invest in, and how involved you want to be in ongoing plan administration.

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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.

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