Unfortunately, Robinhood does not offer Individual (Solo) 401K or any other self-employed accounts at
this time. They only offer
Traditional IRA and ROTH retirement accounts on Robinhood. For a $0 commission Individual (Solo) 401K provider, check out
Charles Schwab.
Free Charles Schwab Account
Open Schwab Account
Free Robinhood Account
Open Robinhood Account
Overview of Charles Schwab's Individual 401(k)
If you're self-employed and don't have a company 401(k) plan, you might want to open a solo 401(k). Many online brokers offer this type of retirement account. Charles Schwab does, and their fees are very competitive. Let's take a closer look.
Opening an Individual 401(k) at Charles Schwab
Charles Schwab has a user-friendly website, and you can open a self-employed 401(k) online. Just
go to their website, then click the "Invest Now" button. On the left, choose
Retirement, then Individual 401(k), and then Open an Individual 401(k) Account.
You'll see online forms that you need to fill out.
Areas to pay attention to include naming a trustee, meeting eligibility requirements,
and deciding if you want the plan to allow loans in the future.
Roth vs. Traditional
You can choose either a Traditional 401(k) or a Roth 401(k). The Traditional 401(k) lets you make contributions before taxes, which lowers your taxable income. However, you'll pay taxes when you take the money out in retirement.
The Roth 401(k) is like the Roth IRA. You make contributions after taxes, so they are not tax-deductible, but withdrawals in retirement are tax-free.
According to IRS rules, if you open a Roth 401(k), you also need to open a Traditional 401(k). You don't have to contribute to the Traditional account, but it will be available in your Charles Schwab online account if you want to contribute later.
Charles Schwab Individual 401(k) Specifics
The U.S. government has set rules for self-employed 401(k)s, and these rules apply to plans at Charles Schwab. You can contribute up to $19,500 each year as an employee. If you're over 50, you can add an extra $6,000 each year.
You can also make employer contributions. As the employer, you can add up to 25% of your income. The total you can put into a solo 401(k) in 2025, including both employee and employer contributions, is $58,000.
Charles Schwab Individual 401(k) Fees
Surprisingly, there is no annual fee for a 401(k) plan at Charles Schwab, and no fee to close the account. There are also no charges for inactivity, low balances, or other ongoing fees. Paper statements cost $2 each, but you can use free electronic statements. Both paper and electronic trade confirmations are free.
The same commission rates for taxable accounts at Charles Schwab apply to non-taxable accounts. This means $0 fees for stock and ETF trades.
Charles Schwab also offers 4,200 mutual funds with no loads and no transaction fees. In total, the broker has 11,544 funds. If you sell a no-transaction-fee (NTF) fund within 180 days of buying it, Charles Schwab charges $49.99. They also charge $49.99 for transaction-fee funds.
Retirement Resources
The Charles Schwab website has a great section for learning. There are articles and videos on many topics. For example, there are resources on fixed-income ETFs and stop loss orders.
If you need help using Charles Schwab’s trading tools, you can watch videos that show how to use their platform or place trades. Building a bond ladder is a good strategy for a retirement account, and there's a video that explains how to do it.
Charles Schwab's mutual fund screener shows 219 target-date mutual funds, most of which have no loads or transaction fees. Some of the fund families include BlackRock, T. Rowe Price, and American Century.
Even with all the great resources Charles Schwab offers, if you’re not comfortable managing your own account, you can let an in-house investment advisor handle your 401(k) for a small fee.
Charles Schwab Individual 401K Review Judgment
Charles Schwab is a great choice if you're looking for a brokerage to help you save for retirement. Besides their excellent 401(k) options, you can use their advanced trading tools to buy and sell stocks. If you have other accounts with Charles Schwab, you can manage them all with one login.
Updated on 1/7/2025.
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