Retirement Plans Aren’t Just for Retirement

Most people think of retirement plans as something you lock away until your 60s. But a Solo 401k isn’t just about the future—it’s a powerful tool for entrepreneurs, freelancers, and side hustlers to grow wealth and cut taxes today.

A Solo 401k allows business owners with no full-time employees to contribute as both “employee” and “employer.” For 2025, you can put in up to $23,000 as an employee contribution, plus up to 25% of business profits as the employer, with a combined cap of $69,000 (or $76,500 if you’re 50+). That’s far more than an IRA limit.

Here’s why it matters now:

Tax Savings Today. Contributions can be pre-tax, lowering your taxable income. That means more cash in your pocket every April. Or, if you choose the Roth Solo 401k option, your money grows tax-free.

Accelerated Wealth Building. With higher contribution limits, you’re sheltering and compounding more money each year. Even modest investments can snowball quickly when you’re putting away $30k, $40k, or more annually.

Flexibility for Business Owners. You can take a loan from your Solo 401k—up to $50,000 or 50% of your balance, whichever is less. That’s access to capital without a bank or credit card.

Planning Beyond Retirement. These accounts also work as legacy tools. Solo 401ks can be passed on, creating generational wealth.

The bottom line: a Solo 401k isn’t just about distant retirement. It’s a versatile, tax-efficient vehicle for building net worth now. If you’re self-employed, ignoring this tool means leaving both money and opportunity on the table.