What is the 2026 E*TRADE Solo 401(k) contribution limit?

The 2026 E*TRADE Individual 401(k) total limit is $70,000. This combines an employee deferral of up to $23,500 plus employer profit-sharing of up to 25% of net self-employment income. Workers age 50–59 or 64+ can add a $7,500 catch-up; those age 60–63 can add $11,250 under SECURE 2.0.

Does E*TRADE offer a Roth Solo 401(k)?

Yes. E*TRADE's Individual 401(k) allows Roth after-tax contributions on the employee deferral portion. There is no income limit for Roth solo 401(k) contributions, unlike a Roth IRA. Employer profit-sharing contributions remain pre-tax.

What fees does E*TRADE charge for an Individual 401(k)?

E*TRADE charges no account opening fee and no annual maintenance fee for its Individual 401(k). Stock and ETF trades are $0 commission. Some mutual funds carry transaction fees, but E*TRADE's No-Load, No-Transaction-Fee mutual fund list includes thousands of options at no cost.

Can I take a loan from my E*TRADE Solo 401(k)?

Yes. E*TRADE permits loans from Individual 401(k) accounts. You can borrow up to 50% of your vested balance or $50,000, whichever is less, with a five-year repayment period. Loan proceeds are not taxed as long as you repay on schedule.

What is the deadline to establish an E*TRADE Solo 401(k)?

You must adopt the E*TRADE Individual 401(k) plan by December 31 of the tax year you want to contribute for. You cannot open the plan retroactively for a prior year, unlike a SEP-IRA. Employer contributions can be made up to October 15, 2027 with a 2026 tax extension.

E*TRADE Solo 401(k) 2026 — Limits, Roth Option & Setup Guide

The ETRADE Individual 401(k) lets freelancers, consultants, and sole proprietors shelter up to $70,000 of self-employment income in 2026 with no account fees. ETRADE offers a full-featured plan including Roth contributions, loan access, and a broad investment marketplace — making it one of the more flexible solo 401(k) options available.

2026 E*TRADE Individual 401(k) Contribution Limits

Contribution Type	2026 Limit
Employee deferral (traditional or Roth)	$23,500
Catch-up, age 50–59 or 64+	$7,500 additional
Super catch-up, age 60–63 (SECURE 2.0)	$11,250 additional
Employer profit-sharing	Up to 25% of net SE income
Total annual additions	$70,000
Total with regular catch-up	$77,500
Total with super catch-up	$81,250

The $70,000 ceiling is set by IRS Section 415 and applies across all solo 401(k) providers in 2026. The solo 401(k)’s employee deferral component makes it substantially better than a SEP-IRA for self-employed workers earning less than roughly $280,000.

Employee vs. Employer Contributions at E*TRADE

Employee deferral (up to $23,500): You elect to defer up to $23,500 of your self-employment income and can designate it as traditional (pre-tax) or Roth (after-tax), or a mix of both. This portion is not tied to a percentage of income — you can contribute the full $23,500 even on modest profits.

Employer profit-sharing (up to 25% of net SE income): Your “employer” contribution is calculated on adjusted self-employment income after the SE tax deduction. The effective rate for most self-employed workers is approximately 20% of gross business income.

Worked Example: $70,000 Self-Employment Income

On $70,000 net SE income in 2026:

SE tax deduction: ~$4,946
Adjusted income: $65,054
Employer contribution (25%): $16,264
Employee deferral: $23,500
Total 2026 contribution: $39,764

A SEP-IRA at E*TRADE on the same income would be limited to ~$14,000. The solo 401(k) produces nearly $26,000 in additional tax-advantaged space.

Roth Option at E*TRADE

E*TRADE’s Individual 401(k) allows you to designate employee deferrals as Roth contributions. This is particularly valuable compared to Vanguard’s solo 401(k), which only offers pre-tax contributions.

Key Roth solo 401(k) advantages at E*TRADE:

No income limits — Unlike the Roth IRA (which phases out at $150,000 for single filers in 2026), the Roth solo 401(k) has no income ceiling
Higher limit — $23,500 vs. $7,000 for a Roth IRA
Tax-free growth — Qualified distributions in retirement are not taxed
No required minimum distributions (RMDs) during the participant’s lifetime after SECURE 2.0 (for Roth 401(k) balances starting in 2024)

Employer profit-sharing contributions remain traditional (pre-tax) regardless of your Roth election on the employee portion.

Loans From Your E*TRADE Solo 401(k)

E*TRADE allows participant loans from Individual 401(k) accounts:

Maximum: 50% of vested balance or $50,000, whichever is less
Term: Up to 5 years (longer for home purchase in some plans)
Interest rate: Typically prime + 1%
Risk: If you leave self-employment or default, the balance becomes taxable income plus the 10% early penalty

Investment Options at E*TRADE

E*TRADE’s Individual 401(k) offers one of the broadest investment menus among solo 401(k) providers:

Stocks and ETFs — $0 commissions with the full market available
Mutual funds — Thousands of no-load, no-transaction-fee funds
Options — Available for qualified investors via Power E*TRADE
Fixed income — Bonds, Treasuries, and CDs
Prebuilt portfolios — For those who prefer a managed-style approach

This breadth surpasses Vanguard’s fund-only solo 401(k) and is broadly comparable to Fidelity and Schwab.

How to Open an E*TRADE Individual 401(k)

Confirm eligibility — You need self-employment income and no full-time employees other than your spouse
Establish by December 31, 2026 — The plan must be adopted by year-end to shelter 2026 income
Apply at etrade.com — Select “Individual 401(k)” under retirement accounts
Complete the adoption agreement — E*TRADE provides the plan documents
Fund the account — Contribute or roll over from a prior employer plan
Invest — Choose from the full E*TRADE investment lineup

Employee deferrals for 2026 must be made by December 31, 2026. Employer profit-sharing contributions can be funded through October 15, 2027 if you file a tax extension.

Form 5500-EZ Requirement

When your ETRADE Individual 401(k) exceeds $250,000, the IRS requires you to file Form 5500-EZ by July 31 of the following year. ETRADE provides year-end balance statements to support this filing.

E*TRADE vs. Competitors for Solo 401(k)

Feature	E*TRADE	Fidelity	Vanguard
2026 limit	$70,000	$70,000	$70,000
Roth option	Yes	Yes	No
Loans	Yes	Yes	No
Account fee	$0	$0	$20/fund
Investment scope	Broad	Very broad	Vanguard only

ETRADE and Fidelity are closely matched. Fidelity edges ahead on investment breadth (including ZERO expense ratio funds), but ETRADE’s Power E*TRADE platform is stronger for active traders who want options strategies within the solo 401(k).

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy