Choosing the right retirement plan can feel overwhelming, especially if you’re self-employed and want more control over your savings. MySolo401k positions itself as an option for those who value flexibility, investment choices, and an online-first setup.
This review covers how the plan works in 2025, what it may offer, where it has limitations, and how it compares with other providers. The goal is to give you a balanced overview so you can decide if MySolo401k could fit your long-term retirement strategy.
📌 Also read: What Is A Solo 401k? Rules, Eligibility, and FAQ for 2025
Key Features of MySolo401k
MySolo401k is structured to give self-employed individuals broad control over how they save and invest for retirement. Instead of limiting choices to mutual funds or a preset menu, this plan allows account holders to shape their own strategy. Below are the main features that stand out in 2025.
Self-Directed Investment Choices
A central feature of MySolo401k is its self-directed structure. This means you have direct account control, sometimes called direct check-writing authority, over the plan’s funds. You can make investment decisions directly without waiting for a custodian’s approval.
This flexibility extends to almost any asset type permitted by the IRS:
✅ Real Estate – You may use plan assets to buy rental properties or commercial buildings in the plan’s name, with rental income flowing back into the account.
✅ Private Equity and Notes – The plan can be used to invest in private businesses or fund loans through promissory notes, potentially accessing opportunities outside of public markets.
✅ Precious Metals and Tax Liens – Investors who want diversification can hold physical metals such as gold or silver, or invest in tax-lien certificates.
✅ Public Equities and Mutual Funds – You still have access to more traditional choices like stocks, ETFs, and mutual funds through a brokerage account tied to the plan.
This range of options may appeal to savers who want alternatives to standard retirement portfolios, though it also requires careful oversight to stay compliant with IRS rules.
Contribution Limits and Catch-Up Rules
For 2025, MySolo401k follows the IRS Solo 401k contribution limits. The maximum combined contribution is $70,000 for those under age 50. This amount includes both employee salary deferrals and employer contributions.
Savers closer to retirement may be eligible for higher limits through catch-up rules:
✅ Standard Catch-Up (age 50 and above) – An additional $7,500 in employee contributions, bringing the total potential employee deferral from $23,500 up to $31,000.
✅ Enhanced Catch-Up (ages 60–63 under SECURE 2.0) – Certain individuals in this age bracket may contribute up to $11,250 in catch-up funds, raising the overall limit to as much as $81,250 when combining employee and employer contributions.
📝 Note: Contribution calculations depend on business structure and income type. Sole proprietors, partnerships, and S corporations all calculate eligible income differently, which affects how much can actually be contributed.
Mega Backdoor Roth and Tax Credits
MySolo401k also makes it possible to implement advanced strategies, such as the Mega Backdoor Roth, which may help maximize Roth savings.
✅ After-Tax Contributions – Beyond the standard elective deferral of $23,500, you may fund additional after-tax contributions up to the overall $70,000 limit.
✅ In-Plan Roth Conversions – These after-tax dollars can then be converted within the Solo 401k to a Roth account or rolled into a Roth IRA. This allows potential tax-free growth on qualified withdrawals in retirement.
✅ Auto-Enrollment Credit – Eligible employers can claim a separate tax credit of up to $500 per year for three years (maximum $1,500 total) if the plan includes automatic contribution features.
Pricing, Fees, and Competitor Comparison
MySolo401k follows a flat-fee model, which makes expenses predictable compared to providers that rely on monthly subscriptions. Beyond costs, it’s also important to weigh the balance of flexibility, support, and responsibilities that come with the plan.
Setup Costs and Annual Fees
- Initial setup fee: $525 — This covers establishing your Solo 401k plan and preparing the required plan documents.
- Annual maintenance fee: $125 — Paid each subsequent year, this fee supports IRS-required plan document updates and compliance assistance.
- First-year total: $650 — This includes both the setup and the first year’s maintenance fee.
This structure provides clarity upfront. Instead of ongoing monthly payments, you’ll know exactly what to expect at the start and each year thereafter.
Pros and Cons of MySolo401k
Like any provider, MySolo401k comes with trade-offs that potential account holders should consider.
Pros
✅ Direct account control — Investors have full authority to direct plan assets, often called “checkbook control.” This allows purchases across a wide range of asset classes, including real estate, private equity, notes, and precious metals, without needing custodian approval.
✅ Streamlined enrollment — The setup process is designed to be fast and digital. Documents can be completed and signed online, often within 24 hours, removing the need for paper forms or in-person meetings.
Cons
❌ Compliance responsibility — As the plan trustee, you are ultimately responsible for IRS filings (such as Form 5500-EZ) and avoiding prohibited transactions. Mistakes in this area could be costly.
❌ No personalized advisory services — While MySolo401k offers customer support, it does not provide tax or investment advice. Those with more complex financial situations may need to work with outside professionals.
MySolo401k vs Other Providers
When compared to other Solo 401k providers, MySolo401k occupies a middle ground. It combines lower upfront costs than some competitors with full investment flexibility, but without recurring subscription charges.
| Provider | Setup Fee | Recurring Fee | Alt-Asset Access | Roth/Mega Backdoor | Notes |
| MySolo401k | $525 | $125 / yr | ✅ All self-directed | ✅ In-plan conversion & $1,500 credit | Flat, predictable pricing |
| Carry | $299 / yr | $29 / mo (annual) | ❌ Basic tier limits assets to traditional securities | ✅ Yes | Lower cost but no real estate or notes |
| Fidelity | $0 | $0 | ❌ Traditional only | ✅ Roth deferrals | Free, but limited to stocks/ETFs |
| Rocket Dollar | $600 | $40 / mo | ✅ All self-directed | ✅ Yes | Higher ongoing cost; checkbook control |
| Ubiquity | $285 | $19 / mo | ✅ Pre-selected funds only | ✅ Yes | Low monthly rate; more advisory support |
- MySolo401k is often chosen by entrepreneurs who want a self-directed plan without paying monthly fees.
- Carry and Fidelity are attractive to those focused mainly on low cost, but they restrict investment options to more traditional assets.
- Rocket Dollar offers the same range of investments as MySolo401k but at a higher ongoing cost.
- Ubiquity provides budget-friendly pricing and more support but limits investment choices to a set fund list.
How to Open and Maintain MySolo401k
Setting up and managing a MySolo401k involves three stages: confirming eligibility, completing the setup process, and staying compliant with IRS rules. Here’s what that looks like in practice.
Eligibility and Required Documents
Before opening a plan, you need to confirm you qualify and have the right paperwork ready.
✅ Self-employment requirement – You (and your spouse, if included) must earn business income through a sole proprietorship, LLC, S-Corp, or other entity type. You cannot employ common-law W-2 staff working over 1,000 hours annually.
✅ Key documents – A Solo 401k requires formal plan documents. MySolo401k prepares most of these on your behalf:
- Employer Identification Number (EIN) for the trust – obtained from the IRS using your SSN.
- Adoption Agreement – outlines plan rules, such as eligibility age or loan provisions.
- Basic Plan Document – the IRS-approved framework that governs contributions and distributions.
Step-by-Step Setup Process
Once eligibility is confirmed, MySolo401k provides an online portal that guides you through setup.
- Secure portal access – You’ll receive login credentials after enrolling.
- Complete questionnaire – Submit details about your business and plan preferences.
- Review and e-sign documents – Adoption and Basic Plan documents are signed electronically.
- EIN issuance – MySolo401k files Form SS-4 to create your plan’s EIN.
- Fund your account – Open a bank or brokerage account under the new EIN and transfer contributions.
📝 Note: Many users finalize these steps in a single business day, which allows them to begin managing investments directly.
Ongoing Compliance and IRS Reporting
Maintaining your plan requires staying current with reporting and fee obligations.
- Form 5500-EZ – Required if plan assets exceed $250,000 at year-end. Due July 31 of the following year.
- Penalties – Late or missed filings may trigger IRS penalties (up to $250 per day) and possible DOL fines.
- Annual fee – A $125 maintenance fee keeps your plan documents updated and compliant with IRS guidelines.
📝 Important: Staying compliant helps preserve your plan’s tax benefits and reduces the risk of unexpected costs.
Conclusion: Is MySolo401k the Right Choice in 2025?
MySolo401k offers broad investment flexibility along with competitive contribution limits and add-on features like Roth options. Its structure favors self-employed individuals who want direct control over their plan, but it also requires a proactive approach to compliance.
Those seeking a more hands-off experience or lower ongoing costs may find custodial providers a better fit. The best choice depends on your priorities — flexibility, cost, and how much responsibility you are comfortable managing.
📌 For more insights, explore our other articles on Solo 401k providers and retirement 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.
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