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Started By
Message
Solo 401k Help
Posted on 6/24/26 at 11:02 am
Posted on 6/24/26 at 11:02 am
I’m looking to set up a Solo 401(k) for my LLC, which is taxed as an S-Corp. I’m the sole owner and only employee, and I plan to make both employee deferral and employer match contributions.
My goal is to automate the process as much as possible. Ideally, contributions would be pulled automatically from my business account (or funded through payroll), then invested automatically into a preselected portfolio without requiring me to log in and manually purchase ETFs each time.
My accountant recommended using Guideline because it integrates with Gusto, which I already use for payroll and tax filings. However, Guideline appears to charge $50/month plus a 0.25% AUM fee.
I also have accounts with Fidelity and E*TRADE, both of which offer no-cost Solo 401(k) plans.
For those who have used Fidelity or E*TRADE Solo 401(k)s:
- How automated is the contribution process?
- Can contributions be linked directly to payroll or recurring transfers?
- Can investments be automatically allocated into chosen ETFs or mutual funds?
- What parts of the process still require manual action?
I'm trying to determine whether Guideline's fees are justified by the convenience and automation, or if a free Solo 401(k) provider can accomplish most of the same things with a little extra effort.
Any advice helps.
My goal is to automate the process as much as possible. Ideally, contributions would be pulled automatically from my business account (or funded through payroll), then invested automatically into a preselected portfolio without requiring me to log in and manually purchase ETFs each time.
My accountant recommended using Guideline because it integrates with Gusto, which I already use for payroll and tax filings. However, Guideline appears to charge $50/month plus a 0.25% AUM fee.
I also have accounts with Fidelity and E*TRADE, both of which offer no-cost Solo 401(k) plans.
For those who have used Fidelity or E*TRADE Solo 401(k)s:
- How automated is the contribution process?
- Can contributions be linked directly to payroll or recurring transfers?
- Can investments be automatically allocated into chosen ETFs or mutual funds?
- What parts of the process still require manual action?
I'm trying to determine whether Guideline's fees are justified by the convenience and automation, or if a free Solo 401(k) provider can accomplish most of the same things with a little extra effort.
Any advice helps.
6
Posted on 6/24/26 at 6:39 pm to Nighthawk504
I just set mine up this year and used E*Trade. I found it pretty easy to set up.
That being said, I don’t do regular contributions from payroll etc. I just chunk some money in there from the company from time to time.
I also have a w2 job that I personally max out my 401k annually so I can’t put anything into my solo 401k personally, only through the LLC.
I do have E*trade pulling $500 every two weeks into a brokerage account to set aside taxes. I found that super easy to set up.
Not sure how much that helps. I also went with E*Trade as it was one of the few that I could do a 401k loan if I ever needed to.
That being said, I don’t do regular contributions from payroll etc. I just chunk some money in there from the company from time to time.
I also have a w2 job that I personally max out my 401k annually so I can’t put anything into my solo 401k personally, only through the LLC.
I do have E*trade pulling $500 every two weeks into a brokerage account to set aside taxes. I found that super easy to set up.
Not sure how much that helps. I also went with E*Trade as it was one of the few that I could do a 401k loan if I ever needed to.
Posted on 6/24/26 at 6:50 pm to Nighthawk504
quote:
integrates with Gusto,
i use them as well for my payroll
do you want checkbook control to do what you want or be locked into a brokerage ONLY account with less options? with checkbook control you setup a bank account in the solo401k trust name. then you control where you invest your money. send $$ to a brokerage, buy real estate, loan money, business investment, etc. you control what your contribution is throughout the year. you fill out payroll form and let gusto track it so the employee contribution part is on your W2 which it has to be.
owner profit sharing will be on the K-1. i simply write my employee contribution checks with my company bank account along with my owner profit sharing checks and deposit them in the solo401k trust bank account. after that you use the bank account to invest where you want. i fill out a solo401k sheet annually for my CPA to keep it simple to track.
if you want checkbook control this is who i use for my solo 401k. i am the plan administrator and trustee and can do what i want within the rules.
there is a setup fee for the qualified retirement plan and there is a annual fee after that but it is tax deductible for your business.
LINK
This post was edited on 6/24/26 at 7:11 pm
Posted on 6/24/26 at 7:53 pm to Nighthawk504
I am going through this process for the first time as well, as LLC taxed as S-Corp. I simply use QuickBooks Online, have a Business Checking Account with local Bank, and just opened the Solo 401k through Fidelity. I have email into my CPA and will respond with advice once I receive.
From my understanding, with a $60,000 annual Salary through S-Corp, I will be able to contribute:
Employee - $24,500
Employer - $60,000 * 25% =$15,000
Total: $39,500
From my understanding, with a $60,000 annual Salary through S-Corp, I will be able to contribute:
Employee - $24,500
Employer - $60,000 * 25% =$15,000
Total: $39,500
Posted on 7/8/26 at 12:16 pm to Nighthawk504
where you at? another hit n run poster? come back and let us know what direction you went.
Posted on 7/8/26 at 1:11 pm to Fat Bastard
Following. Two owner LLC taxed as S Corp and using Gusto for payroll
Posted on 7/8/26 at 1:35 pm to Nighthawk504
SEP IRA might be better if you're the only employee as well.
Can put up to 72k in it depending on what you pay yourself.
Can put up to 72k in it depending on what you pay yourself.
Posted on 7/8/26 at 1:37 pm to Nighthawk504
quote:
Guideline appears to charge $50/month plus a 0.25% AUM fee.
Seems very high.
Call Schwab and Fidelity.
Posted on 7/8/26 at 1:42 pm to TigerMan327
LINK
nope. that may be better IF he had employees other than his wife.
see link above.
quote:
SEP IRA might be better if you're the only employee as well.
nope. that may be better IF he had employees other than his wife.
see link above.
Posted on 7/8/26 at 1:48 pm to Fat Bastard
SEP IRA is terrible if you have employees. You have to match what you give yourself % wise to what you give them.
(You make 300k and give yourself 30k (10%)) you have to give each employee 10% as well. You can void this the first 3 years though.
SEP IRA is insanely easy to setup and doesnt require really any administrative work.
It's the easiest way to give yourself a larger amount of retirement funds without paying fees for administrative work (profit sharing\safe harbor\etcc)
If you're only going to put away the ~25k a 401k will allow or your profit from being self employed isnt over 6 figures then it might not be worth it for ya
(You make 300k and give yourself 30k (10%)) you have to give each employee 10% as well. You can void this the first 3 years though.
SEP IRA is insanely easy to setup and doesnt require really any administrative work.
It's the easiest way to give yourself a larger amount of retirement funds without paying fees for administrative work (profit sharing\safe harbor\etcc)
If you're only going to put away the ~25k a 401k will allow or your profit from being self employed isnt over 6 figures then it might not be worth it for ya
This post was edited on 7/8/26 at 2:00 pm
Posted on 7/8/26 at 2:03 pm to TigerMan327
quote:SEP worked really well for us but yes everyone gets the same %. What I did was bonus up my wife and I so that 25% of that bonused W2 total equaled the max yearly SEP contribution. Everyone else got 25% of their yearly salary. It added up fast.
SEP IRA is terrible if you have employees. You have to match what you give yourself % wise to what you give them.
SEP is basically profit sharing
Posted on 7/8/26 at 2:08 pm to tigerforever7
quote:
I am going through this process for the first time as well, as LLC taxed as S-Corp. I simply use QuickBooks Online, have a Business Checking Account with local Bank, and just opened the Solo 401k through Fidelity.
I have used Fidelity for my solo 401k for 10+ years. 24,500 is correct if under age 50
Posted on 7/8/26 at 3:16 pm to tigerforever7
What did your CPA say?
Posted on 7/8/26 at 3:21 pm to Fat Bastard
To be honest haven't pulled the trigger. Had a call with a buddy today who is a financial advisor and he said to just go with E*Trade since I am familiar with their platform and already have accounts setup with them. He thought the fees with Gusto were too high for what they were offering. He said it might be a little more paperwork but with my financial knowledge I could handle it. Setting it up with E*Trade this week.
Posted on 7/8/26 at 4:01 pm to Nighthawk504
I didn’t find E*trade difficult on the paperwork side.
Just a heads up - you will need to call in and check on the paperwork after submitting the application etc. For whatever reason I had to keep calling to check. I had a few errors on my app, but they do not reach out for whatever reason. So if it gets filed with them and goes quiet, call. I did find them super easy to work with on the phone though. Also make sure they add it to your online account once it’s open. No issue there for me either.
The silence and lack of communication of the errors in their end was frustrating though but their customer service on the phone made it for it.
Just a heads up - you will need to call in and check on the paperwork after submitting the application etc. For whatever reason I had to keep calling to check. I had a few errors on my app, but they do not reach out for whatever reason. So if it gets filed with them and goes quiet, call. I did find them super easy to work with on the phone though. Also make sure they add it to your online account once it’s open. No issue there for me either.
The silence and lack of communication of the errors in their end was frustrating though but their customer service on the phone made it for it.
Posted on 7/8/26 at 4:02 pm to Nighthawk504
I actually just got this wrapped up with my CPA and will be running its first time through Payroll 07/15/2026. The $15,000 Employer Contribution can be made through a 1-time payment so I will just ACH $15,000 from my Operating Account to Fidelity Solo 401k Roth.
The Employee Portion needs to run through Payroll so I have that deduction inputted in my QuickBooks Payroll. That deduction will simply remain in my Operating Account and I will have to go in and Transfer manually to Fidelity Solo 401k Roth (unfortunately not auto feed).
I am doing all Roth so mine will all be after tax.
The Employee Portion needs to run through Payroll so I have that deduction inputted in my QuickBooks Payroll. That deduction will simply remain in my Operating Account and I will have to go in and Transfer manually to Fidelity Solo 401k Roth (unfortunately not auto feed).
I am doing all Roth so mine will all be after tax.
Posted on 7/8/26 at 6:45 pm to TigerMan327
solo401k has way more advantages than a sep if you are lone employee. link spells it out clearly. that is the point.
Posted on 7/9/26 at 9:55 am to tigerforever7
I will follow up to my message above, as it seems every day I learn something new on this.
Apparently my Employer $15,000 Contribution must be to Traditional Solo 401k and cannot be Roth.
Also, I cannot fund straight from my Company Checking Account to Fidelity Individual unless I do a mobile check through App. So I will do a 1-time $15,000 mobile check through Fidelity App.
The Employee Portion will be deducted through Payroll. Then I believe I will need to manually go in after all 24 pay periods and do a mobile check from Company Account to Fidelity (Roth) Solo 401k.
Apparently my Employer $15,000 Contribution must be to Traditional Solo 401k and cannot be Roth.
Also, I cannot fund straight from my Company Checking Account to Fidelity Individual unless I do a mobile check through App. So I will do a 1-time $15,000 mobile check through Fidelity App.
The Employee Portion will be deducted through Payroll. Then I believe I will need to manually go in after all 24 pay periods and do a mobile check from Company Account to Fidelity (Roth) Solo 401k.
Posted on 7/10/26 at 7:45 pm to TigerDoug
If under 50 the max you can contribute to a SoloK in 2026 is $72,000.
Posted on 7/10/26 at 7:47 pm to tigerforever7
This isn’t correct. The employer match can be to the Roth, check Secure Act 2.0.
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