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- Fidelity is a well-known name in the individual 401k space, thanks to its strengths and the reputation of its other retirement accounts.
- E*TRADE has gradually improved its individual 401k offering, particularly in loan administration.
- include an emphasis on tax optimization, with providers like Carry prioritizing tax strategies in their offerings. Automated integration with payroll and accounting software is also becoming increasingly common, making management easier for entrepreneurs.
In a world where retirement planning is increasingly complex, choosing an individual 401k plan can be a challenge. In 2025, several companies stand out for their offerings tailored to the self-employed and small businesses. This article examines the best 401k companies, their features, and the benefits and limitations of each provider to help entrepreneurs make an informed decision about their retirement savings.
Carry
Carry has established itself as a major player in the individual 401k market in recent years. This company focuses on optimizing retirement savings by taking a tax-driven approach. Key features of Carry include the ability to maximize contributions with tax-optimized calculation tools, as well as automated payroll integration with services like Gusto. Additionally, their platform is user-friendly and designed for self-employed professionals. However, Carry, being relatively new to the market, doesn’t yet have the same track record as some established providers, which may be a consideration for potential users.
Fidelity Investments
Fidelity is a well-known name in the individual 401k space, thanks to its strengths and the reputation of its other retirement accounts.
Strengths of Fidelity’s 401k include no setup or annual fees, as well as a wide range of investment options. Their platform also offers top-notch research tools, accessible via a mobile app for convenient account management.
However, the lack of loan provisions can be a drawback, as well as a manual contribution process that may not adapt to income fluctuations.
Charles Schwab
Charles Schwab continues to improve its individual 401k offering, maintaining its competitive position in 2025. Key features of Schwab’s 401k include no account maintenance fees, commission-free trading for stocks and exchange-traded funds, and a robust trading platform with quality research tools. On the downside, Schwab does not offer loans, and high fees may apply for non-Schwab mutual funds, which could affect some users.
E*TRADE
E*TRADE has gradually improved its individual 401k offering, particularly in loan administration.
E*TRADE’s notable features include no setup fees or account minimums, with loan options available and simplified paperwork. Additionally, E*TRADE offers advanced trading tools for active investors. It’s important to note, however, that an annual administration fee of $25 per participant applies, which may be a disadvantage compared to other providers.
New Trends in Individual 401k Plans for 2025 In 2025, the individual 401k market is evolving rapidly, with companies seeking to meet the needs of self-employed individuals and maximize their contributions.
Key trends
include an emphasis on tax optimization, with providers like Carry prioritizing tax strategies in their offerings. Automated integration with payroll and accounting software is also becoming increasingly common, making management easier for entrepreneurs.
Mega Backdoor Roth contributions are also being simplified, making this once-complex strategy more accessible to users. In addition, the expansion of alternative investment options offers contributors a broader range beyond traditional stocks and bonds.
