Retirement accounts for self-employed individuals

For 2026, my default choice for a genuinely self-employed person with no employees other than a spouse would be a solo/individual 401(k) rather than a SEP IRA—especially if maximizing retirement savings or having a Roth option matters.

Why the solo 401(k) usually wins

The important distinction is that the $72,000 headline limit isn't the whole story. With a solo 401(k), you're both employee and employer, so you can potentially put in the $24,500 employee deferral plus the employer contribution. The IRS confirms the $24,500 2026 elective-deferral limit and $72,000 overall defined-contribution limit.www.irs.gov

A SEP, by contrast, has no employee salary-deferral contribution. Its contribution is essentially the employer contribution, capped at $72,000 for 2026.www.irs.gov

So, for example, if your self-employment income is moderate, the solo 401(k) can let you get substantially more money into retirement than a SEP because of the employee component.

My provider pick: Fidelity

I'd lean toward Fidelity Investments for most people.

Its self-employed 401(k) has no account fees or minimums, supports traditional and Roth contributions, and offers the usual broad brokerage investment menu. Fidelity says its 2026 self-employed 401(k) can accommodate up to $72,000 before catch-ups.www.fidelity.com+1

Fidelity Self-Employed 401(k)

Charles Schwab is an equally reasonable alternative. Its Individual 401(k) supports both traditional and Roth contributions, has $0 opening/maintenance fees, and is particularly attractive if you already use Schwab.www.schwab.com

Schwab Individual 401(k)

When I'd choose the SEP instead

I'd pick a SEP IRA if your priority is absolute simplicity, particularly if your income fluctuates substantially and you don't expect to make large employee-style deferrals.

It's very easy to administer, doesn't require the 401(k)-style plan administration, and can generally be established/funded by the business tax-filing deadline, including extensions.www.schwab.com+1

For that use case, Fidelity and Schwab are both good choices; Fidelity's SEP has no account fees/minimums, while Schwab likewise lists $0 opening and maintenance fees.www.schwab.com+1

One particularly important 2026 consideration

If you're age 50+, the solo 401(k) advantage gets larger. The normal 2026 catch-up is $8,000, and for someone who turns 60–63 during 2026, the higher catch-up is $11,250. SEP IRAs don't have catch-up contributions.www.irs.gov

Also, if you're interested in Roth savings, the individual 401(k) is much more compelling. Schwab explicitly offers traditional and Roth Individual 401(k) contributions, and Fidelity offers traditional/Roth employee contributions as well.www.fidelity.com+1

Bottom line:
Solo 401(k) + Fidelity is my default 2026 recommendation for a self-employed person with no non-spouse employees. SEP IRA + Fidelity or Schwab wins if simplicity is more valuable to you than the extra contribution/Roth flexibility.

If you give me your approximate 2026 net self-employment income, age, business type (sole prop/LLC/S-corp), and whether you have a 401(k) at another job, I can calculate which one would actually let you contribute more and estimate the tax savings.

Solo 401(k) vs. SEP IRA Comparison

Top Providers for 2026

Best Solo 401(k) Providers

• Fidelity Investments : Ranked Best Overall due to 0 online trading commissions, robust fund selection, and zero account fees for standard solo 401(k) plans.investopedia.com
• Charles Schwab : Ranked Best for Low Fees , offering extensive self-directed trading options and strong customer support without maintenance charges.investopedia.com
• E*TRADE : Ranked Best for Account Features , providing great digital tools and robust platform usability.investopedia.com
• Rocket Dollar : Ideal if you want alternative assets like real estate or crypto checkbook control, though it involves a setup fee.irafinancial.com+1

Best SEP IRA Providers

• Fidelity Investments : Rated Best Overall for zero account fees, comprehensive self-employed resources, and a wide asset universe.
• Charles Schwab : Recognized as Best Self-Employed Full-Service with 0 baseline fees and an expansive research library.
• Vanguard : Great for low-cost index fund and mutual fund accumulation if you prefer a passive buy-and-hold strategy.finder.com+1

To help narrow down the ideal choice, could you tell me:

• Do you have any employees (other than a spouse)?
• Do you plan to hire employees in the near future?
• Are you interested in making Roth contributions or taking plan loans?

Solo 401(k) vs. SEP IRA for self-employed workers

For 2026, the best choice depends on how much you earn, whether you have employees, how much you want to save for retirement, and whether you want a Roth option.

My starting recommendation: If you're self-employed with no eligible employees other than a spouse, a solo 401(k) is often the better choice if you want to maximize contributions, especially at moderate income levels. A SEP IRA is often better if you prioritize simplicity, minimal administration, and flexible employer contributions.

Let's compare the rules, then look at providers worth considering for 2026.

1. Side-by-side comparison

The 2026 limits are confirmed by the IRS. Catch-up contributions are additional to the standard limits.www.irs.gov+3

What the contribution limits mean for you

2026 contribution limits

$72,000

Solo 401(k)

Combined employee and employer contributions, before catch-up contributions.

$72,000

SEP IRA

Employer contributions only, subject to the compensation formula.

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The actual amount you can contribute depends on your eligible compensation and business structure. A sole proprietor generally calculates the employer contribution using adjusted net self-employment earnings; an S corporation generally uses W-2 wages.

Sources:www.irs.gov+3

The biggest difference is how you reach the limit. With a solo 401(k), you can contribute as the employee and the employer. With a SEP IRA, your contributions are made in the employer capacity only.

For example, if your eligible business earnings are relatively modest, the solo 401(k)'s employee contribution may let you save more than a SEP IRA. If your earnings are high, both plans may allow you to approach the same overall annual limit.

Important: The $72,000 figure is a ceiling, not a guaranteed contribution amount. If you also participate in a 401(k) through another job, your employee salary-deferral limit is generally shared across those plans.www.irs.gov+1

2. Best providers to consider in 2026

These are my shortlist based on published plan features, investment flexibility, and costs. Provider rankings are my assessment, not an official rating.

• 

1. Fidelity Investments

(Best overall starting point)

Best for: Low-cost investing, broad investment choices, and Roth contributions.

• Offers both a self-employed 401(k) and a SEP IRA.
• Advertises no account fees for these plans.
• Its self-employed 401(k) supports traditional and Roth contributions.
• Its SEP IRA is simple to administer.

Trade-off: The standard solo 401(k) plan has feature limitations; verify loan and after-tax contribution provisions before opening.

Explore Fidelity's solo 401(k) ·Explore Fidelity's SEP IRA

Sources:www.fidelity.com+2

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• 

2. E*TRADE

Best for: A solo 401(k) with a participant-loan feature.

• Offers traditional and Roth individual 401(k) options.
• Provides a broad selection of investments.
• Its published plan materials describe participant loans, subject to plan terms.

Trade-off: Check the exact loan provisions, investment costs, and eligibility requirements. Advanced after-tax contribution strategies may require a custom plan.

Explore E*TRADE's individual 401(k)

Source:us.etrade.com+2

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• 

3. Charles Schwab

Best for: Investors who already use Schwab or want a broad brokerage platform.

• Offers individual 401(k) and SEP IRA accounts.
• Provides a wide range of self-directed investment options.
• Has tools to estimate and compare retirement-plan contributions.

Trade-off: Confirm the current plan's Roth, loan, and in-plan conversion provisions before choosing it over Fidelity or E*TRADE.

Compare contributions with Schwab's calculator

Source:us.etrade.com+2

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• 

4. Wealthfront

Best for: Hands-off investors considering a SEP IRA.

Wealthfront is worth evaluating if you want a managed portfolio rather than selecting individual funds yourself.

Trade-off: Advisory fees can make it more expensive than managing a low-cost brokerage portfolio yourself. Confirm its current SEP IRA availability and pricing before committing.

Visit Wealthfront

Source:www.finder.com

My provider verdict

• Fidelity: Start here if you want a straightforward, low-cost plan.
• E*TRADE: Compare it first if participant loans matter.
• Schwab: A strong alternative if you already invest there.
• Wealthfront: Consider it if you prefer automated management for a SEP IRA.

Check the current plan documents and fee schedules directly before applying. A provider's $0 account fee does not necessarily mean every investment, transaction, or advisory service is free.

3. Which plan is likely to save you more?

The right choice depends on your income and business structure. Here are the situations where each plan tends to win.

Choose a solo 401(k) if…

• You want to contribute as much as possible at moderate income levels.
• You want the option of Roth employee contributions.
• You're age 50 or older and want catch-up contributions.
• You may want a plan loan, if your plan permits it.

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Choose a SEP IRA if…

• You want minimal ongoing administration.
• Your income varies and you want to decide each year how much to contribute.
• You have eligible employees and want a relatively straightforward employer-funded plan.
• You don't need employee salary deferrals or a standard Roth 401(k) feature.

One important caveat: if you have employees other than your spouse, don't assume you can use a solo 401(k). Eligible employees generally must be included in a qualified plan. With a SEP IRA, you generally must contribute the same percentage of compensation for each eligible employee as you contribute for yourself.www.fidelity.com+2

4. Important 2026 tax and setup considerations

Because we're already in October 2026, the timing deserves attention.

• Solo 401(k): Employee salary-deferral elections generally have year-end timing requirements. Special rules may apply to a sole proprietor establishing a first-year plan. Don't assume you can open one now and make a full 2026 employee deferral retroactively.
• SEP IRA: Contributions can generally be made by the business's tax-return due date, including extensions, subject to the applicable rules.
• Tax deductions: Traditional contributions may reduce current taxable income, while Roth contributions are made after tax.
• Form 5500-EZ: A one-participant 401(k) generally must file when plan assets reach $250,000 at year-end, subject to exceptions and final-year filing rules.

The IRS's one-participant 401(k) guidance and SEP contribution guidance are the best places to confirm your particular deadlines and requirements.www.irs.gov+3

5. Let's narrow it down to the best choice for you

I can give you a much more useful recommendation if I know a few things about your situation. The following quick comparison will help identify the best plan and provider for your circumstances.

1. How is your business structured?

Sole proprietor / single-member LLC

S corporation

Partnership / multi-member LLC

Other

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2. Approximately how much annual business income do you earn?

For an S corporation, distinguish business profit from your W-2 salary when we calculate contributions.

Under $50,000

$50,000–$100,000

$100,000–$200,000

$200,000–$360,000

Over $360,000

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3. What is your age range?

Under 30

30–39

40–49

50–59

60–63

64 or older

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4. What's your main goal?

Maximize retirement contributions

Reduce my current tax bill

Keep costs and paperwork minimal

Build Roth savings for tax-free qualified withdrawals

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5. Do you have employees other than your spouse?

No

Yes

Not currently, but I may hire

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6. Do you want Roth contributions?

Yes, or I'd like that option

No, I prefer traditional pre-tax contributions

Not sure yet

[Find my best plan and provider]

With those details, I can narrow the list to one or two providers and estimate how much you could contribute under each plan for 2026. This will be an educational estimate; your final contribution and deduction should be confirmed against your tax situation and the provider's plan documents.