Charles Schwab Solo 401k Review (2026)
Charles Schwab offers a solid prototype Solo 401k with Roth contributions and no fees, though it lacks loan provisions.
Pricing Details
| Fee Type | Amount |
|---|---|
| Setup Fee | $0 |
| Annual Fee | $0 |
| Total First Year | $0 |
No setup, annual, or maintenance fees.
Pros and Cons
- Offers both Traditional and Roth contributions
- Wide range of investment options
- No setup or annual fees
- Excellent customer service
- Commission-free stock and ETF trading
- Strong research and educational tools
- No participant loan provisions
- No after-tax contribution option
- Limited to Schwab platform investments
- Manual paperwork for some administrative tasks
User Sentiment Analysis
While the brokerage platform itself is robust and the Schwab Mobile app is excellent for trading, the Solo 401k product feels neglected. The lack of loans, combined with manual administrative processes, makes it difficult to recommend over Fidelity or E*TRADE.
Strategic Insights
- No longer a differentiator on Roth contributions—Fidelity now matches this feature
- Customer service remains a strong point, but may not justify choosing over competitors
- The lack of loans is a significant gap compared to E*TRADE
Market Position
For years, Schwab was the default recommendation for users needing Roth contributions, as it supported them when Fidelity did not. With Fidelity's 2026 update, Schwab has lost this unique selling proposition and now finds itself in a precarious middle ground—no loans like E*TRADE, no zero-expense funds like Fidelity.
Target Audience: Investors who value excellent customer service and are comfortable with a more traditional brokerage experience
Watch Out For
- Manual submission (paper or PDF upload) often required for plan establishment and contributions
- Administrative processes described as "outdated" compared to fully digital competitors
- No participant loans limits liquidity options
- No Mega Backdoor Roth or alternative investments
Feature Comparison
Compliance Notes
Does not prepare Form 5500-EZ; once assets exceed $250,000, you must file yourself or hire a CPA.
Full Review
Charles Schwab's Individual 401k provides a good middle ground among prototype plans, offering Roth contribution options without any setup or maintenance fees.
The plan supports both Traditional (pre-tax) and Roth (after-tax) contributions, giving you flexibility in your tax planning strategy. Schwab's investment platform is comprehensive, offering stocks, bonds, ETFs, mutual funds, and options with commission-free online trading.
Schwab is particularly known for excellent customer service, which can be valuable when navigating Solo 401k contributions and compliance requirements. Their research tools and educational resources are also top-tier.
The main limitation is the lack of participant loan provisions - if you want the ability to borrow from your plan, E*TRADE is a better choice. Schwab also doesn't support after-tax contributions or alternative investments. Some users note that administrative tasks can require manual paperwork rather than fully digital processes.
Key Features
- Traditional and Roth contributions
- Rollovers accepted
- Commission-free trading
- Extensive investment selection
- Award-winning customer service
- Comprehensive research tools
Who Is This Best For?
Investors seeking a straightforward, low-cost plan with Roth options and excellent customer support, who dont need loan provisions.
Last updated: January 13, 2026