Lesson · Retirement · investing

The retirement account built for the self-employed.

A Solo 401(k) lets a business owner sock away far more than an IRA — and invest it in real estate and private deals, not just stocks.

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$83,250

2026 SOLO 401(K) CEILING WITH SUPER CATCH-UP

TAX YEAR 2026

IRA vs Solo 401(k) limits

$7,500 under 50$72,000 under 50

$8,600 at age 50+$80,000 at age 50+

Ages 60-63: $8,600Ages 60-63: $83,250

How it works

How you get to $72,000

Employee deferralUp to $24,500 of your pay

Employer profit shareRoughly 25% of W-2 comp

After-tax dollarsFill the gap, convert to Roth

WORKED EXAMPLE

$200K rental, $100K loan

50% leveraged50% leveraged

50% of net gain taxedNo UDFI tax

UDFI appliesSec 514(c)(9) carve-out

Key points

What the plan can hold

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Rental real estate

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Private money loans

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Private equity deals

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Syndications

✓

Cryptocurrency

✓

Stocks and funds

GUARDRAILS

Allowed vs prohibited

Buy an unrelated rentalBuy your own property

Lend to a third partyLend money to yourself

Invest in outside dealsFund a business you own

Free download

The The Solo 401(k) field guide — one page

The strategy, the checklist, the key numbers, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

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Field guide · PDF

The Solo 401(k)

Cliff notes + checklist + the law

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The law behind it

Primary sources

Verify against the source before you rely on it. This is education, not legal or tax advice.

26 U.S.C. Sec. 401(k) — Cash-or-deferred (401k) plans — the elective-deferral rules a one-participant plan uses.law.cornell.edu/uscode/text/26/401

26 U.S.C. Sec. 408 — IRA rules — relevant when rolling an existing IRA into a Solo 401(k).law.cornell.edu/uscode/text/26/408

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