Quick answer
- Best free all-rounder: E*TRADE. No setup or annual fee, Roth deferrals and plan loans.
- Best free for index investors: Fidelity or Schwab. No account fees and Roth deferrals, but no loans.
- Vanguard: no longer offers its own Solo 401(k). It points people to Ascensus, which charges small annual fees and limits you to Vanguard mutual funds.
- Best for advanced features: Ubiquity, or custom-plan providers like Nabers Group, My Solo 401k and IRA Financial. You pay a fee for features like after-tax “mega backdoor Roth” contributions and help with Form 5500-EZ.
Comparison table
Features and fees are approximate as of September 2026 and change often. Check each provider before opening an account.
| Provider | Setup fee | Annual fee | Roth deferrals | Loans | Best for |
|---|---|---|---|---|---|
| E*TRADE (Morgan Stanley) | $0 | $0 | Yes | Yes | Free plan with loans |
| Fidelity Self-Employed 401(k) | $0 | $0 | Yes | No | Low-cost index funds, simple setup |
| Schwab Individual 401(k) | $0 | $0 | Yes | No | Schwab customers, ETF investors |
| Ascensus (formerly Vanguard) | $0 | About $20 plus $20 per fund | Yes | No | Vanguard fund loyalists |
| Ubiquity Single(k) | About $285 | About $19/mo | Yes | Yes | Flat fee, own brokerage choice |
| Nabers Group | About $499 | About $29/mo | Yes | Yes | Automated custom plan |
| My Solo 401k, IRA Financial | About $650 to $999 | About $125 to $399 | Yes | Yes | After-tax contributions, alternatives |
“Roth deferrals” means Roth employee contributions. Roth employer contributions, allowed since SECURE 2.0, are still not supported by many prototype plans.
Free prototype plans
Prototype plans use the provider’s standard plan document. They are free or cheap, but you get only the features the provider chose.
E*TRADE
ETRADE’s Individual 401(k) has no setup or annual fee and no minimum. It supports Roth deferrals, accepts rollovers and is one of the few free plans with a loan* option. You get full brokerage access: stocks, ETFs and mutual funds.
Fidelity
Fidelity’s Self-Employed 401(k) has no account fees. Its Roth option was added more recently. Fidelity says loans aren’t offered and in-plan Roth conversions aren’t supported. It accepts rollovers of old workplace 401(k)s. Confirm whether IRA rollovers are accepted before you plan on consolidating.
Schwab
Schwab’s Individual 401(k) has no setup or maintenance fee and supports Roth contributions. There are no loans. Commission-free ETFs and Schwab funds are cheap, but some third-party mutual fund trades can cost up to about $74.95.
Ascensus (formerly Vanguard)
Vanguard stopped offering its own Solo 401(k) and directs interested investors to Ascensus. Reported costs are about $20 a year plus $20 per Vanguard fund held. Investments are limited to Vanguard mutual funds, and loans aren’t available. It can still suit someone who wants a three-fund Vanguard portfolio.
Paid and custom plans
Ubiquity
Ubiquity charges a flat fee with no asset-based fee. Its Single(k) plan is listed at $285 setup and $19 a month billed annually. Single(k) Plus, with recordkeeping and preselected investments, is $350 setup and $37.50 a month. Ubiquity lists pre-tax and Roth contributions, loans and a mega backdoor Roth feature.
Nabers Group, My Solo 401k and IRA Financial
These providers write a custom plan document. In exchange for setup and annual fees, you typically get Roth, loans, voluntary after-tax contributions for mega backdoor Roth conversions, and help with Form 5500-EZ. IRA Financial also allows alternative assets such as real estate.
A custom plan can make sense once your balance is large or you want features no free plan offers.
Worked example: what fees cost over 10 years
Assume a freelancer keeps the plan for 10 years and holds three funds where relevant. Trading costs and fund expenses are excluded.
| Provider | First year | 10-year total |
|---|---|---|
| E*TRADE, Fidelity or Schwab | $0 | $0 |
| Ascensus with 3 Vanguard funds | $80 | $800 |
| Ubiquity Single(k) ($285 + $228/yr) | $513 | $2,565 |
On a $50,000 balance, $228 a year is about 0.46%. On a $300,000 balance, it’s about 0.08%. Flat fees matter less as your balance grows. Fund expense ratios usually matter more than account fees.
Plan administration fees paid by your business may be deductible. Fees taken from the account are not deducted separately.
How to choose
- Need a loan feature? E*TRADE (free) or a paid plan.
- Want mega backdoor Roth? A custom plan that allows after-tax contributions and in-plan conversions.
- Want zero fees and simple index funds? Fidelity or Schwab.
- Rolling in old IRAs? Confirm the provider accepts IRA rollovers, and use this to clear pre-tax IRA money before a backdoor Roth IRA.
- Near $250,000? Plan for Form 5500-EZ. Free providers generally leave that filing to you.
For limits and the math, see Solo 401(k) Contribution Limits 2026 and How to Maximize Them.
What to check before you open an account
- Plan document: make sure it allows Roth deferrals, and loans or after-tax contributions if you want them.
- Incoming rollovers: some providers accept only workplace plan rollovers, not IRAs.
- Investment menu: a full brokerage window or a limited list of funds.
- Contribution tracking: some providers make you label employee and employer contributions yourself.
- Customer support: ask how the provider handles corrective distributions and year-end contribution coding. Mistakes here are easier to fix with good support.
- EIN requirement: most providers ask for a business EIN. See Do I Need an EIN as a Sole Proprietor?
Frequently asked questions
Can I switch Solo 401(k) providers later?
Yes. Most providers accept direct transfers from another Solo 401(k). You’ll need to adopt the new plan document and close the old plan properly.
Do free providers file Form 5500-EZ for me?
Generally no. Once plan assets reach $250,000 at year-end, you file it yourself, electronically through the DOL’s EFAST2 system or on paper with the IRS.
Is a Solo 401(k) loan a good idea?
It’s an option, not a recommendation. Loans are generally limited to the lesser of $50,000 or half your vested balance, and missed payments can become taxable.
Can my spouse join my plan?
Yes, if your spouse earns income from the business. All these providers allow a spouse as a participant.
This article is general information, not financial or tax advice. Fees and features change often. Check each provider before opening an account.
Related guides
- Health Insurance for Self-Employed: Your Options in 2026
- ACA Marketplace for Freelancers: How Subsidies Work
- HSA for Self-Employed: Triple Tax Advantage Explained
- Disability Insurance for Freelancers: Is It Worth It?
About this guide
Written by the Freelancer Tax HQ editorial team, based on our professional experience, official US government sources (IRS, SSA and other agencies) and reputable informational articles listed in the sources below. Last reviewed on . Tax rules change often, and we update this guide when they do. Read our editorial policy or report an error.
Sources
Fidelity: Self-Employed 401(k); Ubiquity pricing; Ubiquity Solo 401(k); The College Investor: Comparing the best Solo 401k providers; ForUsAll: Top Solo 401(k) providers; White Coat Investor: Where to open your Solo 401(k); IRS: One-participant 401(k) plans. Example figures are FreelancerTaxHQ illustrations.
Official resources linked in this guide: IRS: Get an EIN.