If you’re self-employed or run a small business with no full-time employees, the Fidelity Solo 401k may be worth considering as a retirement savings option.
Fidelity does not charge account maintenance fees and offers access to a broad selection of investments, including mutual funds, ETFs, individual stocks, and bonds. The platform also provides $0 commission online trades for US stocks and ETFs, which may appeal to active investors.
This review covers Fidelity’s Solo 401k features, contribution limits, investment options, and fees. It also compares Fidelity with alternatives like Vanguard and Schwab, and what to expect when opening and managing an account.
📌 Also read: Best Solo 401k Brokerages in 2025
Eligibility Rules for Fidelity Solo 401k
To qualify for a Fidelity Solo 401k in 2025, you must meet the following conditions:
✅ Be self-employed or own an eligible business. Sole proprietors, independent contractors, single-member or multi-member LLCs, partnerships, and corporations may qualify. The key requirement is that the business generates self-employment income and does not employ full-time workers outside of owners and their spouses.
✅ Have no full-time W-2 employees other than a spouse. If you hire someone who works more than 1,000 hours in a year, you would be required to offer them participation in the plan. At that point, the Solo 401k structure would no longer apply.
✅ Obtain an Employer Identification Number (EIN). An EIN is required to create the plan documents and track contributions. You can request one directly from the IRS website at no cost.
✅ Spousal participation may be allowed. Your spouse may join the plan if they earn income from the business, such as receiving payroll wages.
✅ No nondiscrimination testing required. Because this is a one-participant plan, you are not subject to compliance tests like ADP or ACP as long as no additional employees are eligible.
📝 Note: If you expect to expand your business and hire employees in the future, or if you already participate in another employer-sponsored 401k, you may need a different type of plan. For owner-only businesses, Fidelity’s Solo 401k provides high contribution potential and relatively simple administration.
Features, Contributions, and Costs
Fidelity’s Solo 401k stands out for combining high contribution potential with a wide selection of investment choices and transparent costs. Beyond the numbers, the platform also includes tools and resources designed to help self-employed savers make more informed decisions. Below is a closer look at what you can expect.
2025 Solo 401k Contribution Limits
For 2025, the Solo 401k at Fidelity allows you to maximize retirement savings through both employee and employer contributions. The limits are structured as follows:
- Employee deferral: You may contribute up to $23,500 of earned income.
- Catch-up contributions: Those age 50 and older may add $7,500. A higher catch-up of $11,250 is available for ages 60 to 63, bringing contribution flexibility during peak earning years.
- Employer profit-sharing: You can also contribute up to 25% of net self-employment earnings.
- Combined maximum: Total contributions, including salary deferrals and profit-sharing, are capped at $70,000, or $81,250 if you qualify for the enhanced catch-up.
This tiered structure allows you to scale contributions depending on age and income, potentially giving you more tax-advantaged savings power compared to an IRA.
Investment Choices and Trading Tools
A key benefit of Fidelity’s Solo 401k is that it gives you full access to Fidelity’s brokerage platform. This means you can invest using the same tools available to retail traders:
- Investment menu: Choose from stocks, ETFs, bonds, mutual funds, and international securities.
- Options trading: Advanced traders may use features like the Options Strategy Builder and Active Trader Pro for real-time analytics.
- Digital platforms: Fidelity’s web and mobile apps include streaming quotes, charting tools, and one-click order placement.
User feedback, especially from Reddit discussions, highlights $0-commission stock and ETF trades as strong advantages. Some note that contributions may still need to be sent by check, but overall the trading flexibility is viewed as competitive.
Fidelity Solo 401k Fees and Costs
Cost is a critical factor when choosing a retirement plan, and Fidelity’s Solo 401k is positioned to appeal to cost-conscious investors. The plan has:
- No account fees: $0 setup, $0 annual maintenance, and no minimum balance.
- Trading commissions: Online U.S. stocks and ETFs trade commission-free. Options trades cost $0.65 per contract, plus standard regulatory fees. Certain ETFs may carry a $100 transaction fee, and SEC activity fees apply to sales.
- Transparent pricing: Fidelity emphasizes that there are no hidden fees, such as record-keeping or advisory charges, that sometimes appear with other providers.
📌 Also read: Self-employed and small business retirement plans | Fidelity
Research Tools and Retirement Resources
Beyond account access, Fidelity provides educational and planning resources designed for self-employed investors. These include:
- Screeners and research: Use filters to compare stocks, funds, and ETFs by performance, fees, and analyst insights.
- Retirement planning calculators: Tools like the “Retirement Score” can help you estimate readiness and test different contribution levels.
- Educational content: Articles, webinars, and guides explain rollovers, loan options, and withdrawal rules.
- Support channels: You can access Fidelity’s small-business specialists, plus insights from community discussions such as Fidelity’s subreddit.
These resources may be useful if you prefer a hands-on approach to retirement planning or want to compare strategies before making contribution decisions.
Advantages of Fidelity’s Solo 401k Compared to Others
Fidelity’s Solo 401k is structured to balance low cost with strong investment access. Several features distinguish it from other providers.
Zero Plan Fees
Fidelity does not charge setup or annual administration fees. For many self-employed savers, this removes one of the most common barriers to starting and maintaining a retirement plan.
In-House Brokerage Integration
Unlike some providers that rely on third-party custodians, Fidelity integrates the Solo 401k directly with its brokerage platform. This setup gives account holders access to commission-free trades, low-cost index funds, and fixed-income products in one place.
Advanced Trading Tools
Fidelity includes its proprietary tools, such as Active Trader Pro and the Options Strategy Builder, without requiring premium account status. These resources are designed for investors who want more control over execution and portfolio management.
Simplified Compliance Process
Solo 401k plans generally avoid nondiscrimination testing and only require Form 5500 once assets exceed $250,000. Fidelity’s reporting and guidance around this threshold are considered more streamlined compared to some smaller providers, helping self-employed investors stay on track with IRS rules.
Fidelity vs. Competitors (Vanguard, Schwab)
| Feature | Fidelity | Vanguard | Schwab |
| Account Fees | $0 setup, $0 annual | $0 setup, $0 annual | $0 setup, $0 annual |
| Trade Commissions | $0 stocks/ETFs; $0.65 options | $0 stocks/ETFs; $1 per options contract | $0 stocks/ETFs; $0.65 options |
| Investment Menu | 5,000+ mutual funds; 3,000+ ETFs; bonds; CDs | Vanguard funds + ETFs; limited third-party | 2,000+ mutual funds; 4,000+ ETFs; bonds; CDs |
| Trading Platforms | Active Trader Pro; web; mobile | Web/mobile only | StreetSmart Edge; web; mobile |
| Research Tools | Advanced screeners; Fidelity Research Center | Fund-focused research | Comprehensive screeners; Schwab Equity Ratings |
| Support | 24/7 small-business desk; chat; phone | Weekday support; chat/callback | 24/7 support; branch network |
Opening and Managing a Fidelity Solo 401k
Getting started with a Fidelity Solo 401k involves a few setup steps, required documents, and ongoing account management options. Below is a breakdown of what to expect when opening, funding, and maintaining your plan.
How to Open a Fidelity Solo 401k Account
The process is done online and can typically be completed within one session. Here’s a step-by-step outline:
Step 1: Start the application
Visit Fidelity’s Self-Employed 401k page and select “Open an account.” This begins the secure online setup process.
Step 2: Enter personal and business details
Provide information such as your name, Social Security number, and Employer Identification Number (EIN). An EIN is required for all Solo 401k plans.
📌 Also read: Self‑Employed 401(k) Adoption Agreement Instructions | Fidelity
Step 3: Complete plan documents
Fill out the plan application and adoption agreement. Fidelity uses its FidSafe (DigiVault) platform for secure electronic signatures and storage.
Step 4: Select contribution options
Choose whether to make contributions on a traditional (pre-tax) or Roth (after-tax) basis. Starting in 2026, high-income catch-up contributions will need to be Roth under IRS rules.
Step 5: Fund the account
Set up electronic transfers from your business bank account or mail a check. Fidelity provides step-by-step instructions during setup.
Step 6: Begin investing
Once Fidelity verifies your documents, your Solo 401k brokerage account is opened. At that point, you can start placing trades and selecting investments.
Documents Needed and Online Access
Before funding and managing the plan, certain documents are required:
✅ EIN confirmation – An IRS-issued Employer Identification Number letter.
✅ Plan application & adoption agreement – Completed through FidSafe or the PDF forms bundle.
✅ Trust agreement (if applicable) – If you establish a prototype plan, upload the trust document.
✅ One-time withdrawal & rollover forms – Available in your plan dashboard for future use.
Rollovers and Withdrawals
Fidelity Solo 401k accounts also allow flexibility with transfers and access to funds under certain conditions:
✅ Rollovers – You may move assets into the plan from Traditional 401ks, SEP IRAs, or Traditional IRAs. Fidelity provides both online rollover tools (NetBenefits) and paper forms.
✅ Withdrawals – Allowed only after a “triggering event,” such as reaching age 59½, plan termination, or disability. Early withdrawals generally incur ordinary income tax plus a 10% penalty.
Fidelity Customer Support and Education
Fidelity offers support and resources to help you manage your Solo 401k effectively:
✅ Dedicated business specialists – 24/7 phone and live-chat support tailored to self-employed account holders.
✅ Educational content – Articles, webinars, and tutorials through Fidelity Viewpoints and Learning Center, covering IRS updates, contribution strategies, and investment choices.
✅ Planning tools – Retirement calculators, investment screeners, and interactive workshops available directly in your account dashboard.
Conclusion: Is the Fidelity Solo 401k Right for You in 2025?
Fidelity’s Solo 401k remains one of the strongest low-cost options in 2025. It combines no setup or maintenance fees with high contribution limits and broad investment flexibility through Fidelity’s brokerage platform. Savers also benefit from commission-free stock and ETF trades, a full suite of planning tools, and access to both traditional and Roth contribution features.
That said, the right plan depends on your priorities. Consider how often you trade, whether you want after-tax Roth strategies, and how your business structure may evolve in the future. Exploring competitors such as Vanguard or Schwab may also help you compare features more effectively.
📌 For additional guidance, explore our other articles on Solo 401k providers and retirement planning strategies:
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.