Maximize Your Retirement Savings with Wealthfront Solo 401k

Maximizing your retirement savings is a top priority for many of us, but it can be overwhelming to figure out the best way to do so. With Wealthfront Solo 401k, you can take control of your financial future.

Wealthfront Solo 401k allows you to contribute up to $57,000 per year, with an additional $6,500 catch-up contribution if you're 50 or older. This means you can potentially save a significant amount for your retirement.

By automating your investments, Wealthfront Solo 401k helps you make the most of your money. With a low fee of 0.25% per year, you can keep more of your hard-earned cash.

With a self-directed IRA, you have the flexibility to invest in a variety of assets, including real estate and cryptocurrencies. This allows you to diversify your portfolio and potentially increase your returns.

Discover more: Individual Retirement Accounts

You can sign up for a Wealthfront Solo 401(k) if you're a freelancer or independent contractor, giving you access to a tax-advantaged retirement savings plan.

A Solo 401(k) is also known as a self-employed 401(k), and it's not just for solo entrepreneurs - anyone can use it.

You can contribute up to 20% of your net earnings from self-employment to a Solo 401(k), and in some cases, up to $57,000 or more per year.

Wealthfront Solo 401(k) provides a streamlined process to open and manage your account, making it easy to get started.

You can use the funds in your Solo 401(k) to invest in a variety of assets, such as stocks, bonds, and real estate.

Explore further: Self-directed Solo 401k

Wealthfront's Solo 401k is designed to help you manage your retirement savings with ease. Wealthfront starts by assessing your goals and risk tolerance through a series of 10 questions, 4 objective and 6 subjective.

Their investment philosophy is based on Modern Portfolio Investing, which focuses on managing portfolio volatility and keeping costs low. Wealthfront allocates your investments between stocks, bonds, and other asset classes based on your risk assessment.

Suggestion: 401k Portfolio Allocation

For accounts over $100,000, Wealthfront offers additional features, including Tax Loss Harvesting and Stock-Level Tax-Loss Harvesting. Tax Loss Harvesting allows you to claim a tax credit for $3000 in capital losses, plus offset any gains with losses.

Wealthfront's algorithms check for daily capital loss opportunities to minimize your tax liability. They virtually guarantee that you'll never pay the government more than you have to in taxes.

Here are the key features of Wealthfront's PassivePlus program:

A Solo 401(k) is a great option for self-employed individuals, and it offers some fantastic features and benefits.

You can choose between a traditional plan and a Roth plan, each with its own tax advantages. The traditional plan allows you to deduct the amount you pay from your income for that year, giving you an immediate tax break.

The Solo 401(k) has far higher annual contribution limits than a regular IRA, with a combined total of $70,000 in 2025, up from $69,000 in 2024. You can add another $7,500 if you're age 50 or older.

Curious to learn more? Check out: Solo 401k Plan Document

One of the best features of a Solo 401(k) is that you can take loans from your account before you retire. This is not an option with many other retirement plans.

The Solo 401(k) is relatively straightforward in terms of paperwork, as it is designed for one-person shops, not corporations.

Here are the key takeaways about the Solo 401(k):

By taking advantage of these features and benefits, you can save for retirement and lower your taxes, just like a couple who has seen significant savings options and lower taxes due to the Solo 401(k) plan.

To qualify for a solo 401(k), you must run a business that produces income, and you can be a sole proprietor, small business owner, independent contractor, or freelancer with no employees except for a spouse.

Your business can take any form, such as a sole proprietorship, LLC, corporation, or partnership, as long as it produces income and you meet the eligibility requirements.

If your business meets these criteria, you can open a solo 401(k) plan and take advantage of its benefits.

To qualify for a solo 401(k), you must produce your income from your own business. And the business must be run by you alone, or you and your spouse.

Sole proprietors typically fit this description.

You can also qualify if you're a small business owner without employees, except for a spouse. Independent contractors and freelancers with no employees are also eligible.

The business must produce income, which is verified through your tax records. This is a crucial step in setting up a solo 401(k) plan.

Your business can take any form, whether it's a sole proprietorship, an LLC, a corporation, or a partnership, as long as you're an independent contractor or freelancer with no employees.

For your interest: Solo 401k for Non Owner W2 Employees Options

Wealthfront charges 0.25% per year for all of its portfolios.

If you have a portfolio under $100,000, you'll also pay 0.07-0.16% per year for fund fees.

One of the most significant advantages of a Wealthfront Solo 401(k) is its high contribution limits. The IRS adjusts these limits for inflation every year, so they can change over time.

Discover more: Roth Solo 401k Contribution Limits 2024

For 2025, you can contribute up to $70,000, or 25% of your adjusted gross income, whichever is less. People age 50 and older can add an extra $7,500 as a "catch-up contribution" in 2024 and 2025.

The contribution limits are the same for both employees and employers, so you can make contributions in both roles. This flexibility is a key benefit of a Solo 401(k).

As an example, if you're 50 or older, you could contribute up to $77,500 in 2025, assuming you have a high enough income to reach the 25% limit.

This high contribution limit can make a huge difference in your retirement savings, especially if you're self-employed or have a side business.

Curious to learn more? Check out: Wealthfront S&p 500

Wealthfront's investment accounts are insured by the SIPC up to $500,000, giving you peace of mind.

Wealthfront's Cash accounts are protected by FDIC insurance up to $250,000 through its partner banks.

Wealthfront's website is encrypted with HTTPS, ensuring your data is secure.

Wealthfront submits to third-party security audits on an annual basis, helping to prevent potential security risks.

Broaden your view: Solo 401k S Corporation

Wealthfront Solo 401(k) plans have no setup fees, which means you can start investing in your future without breaking the bank.

With a minimum account balance of $500, you can start taking advantage of tax benefits and grow your retirement savings.

Wealthfront Solo 401(k) plans are designed for freelancers and small business owners, offering a range of investment options and low fees.

Low fees mean more of your money stays in your account, where it can continue to grow over time.

The plan also allows for Roth and traditional contributions, giving you flexibility in how you save for retirement.

Consider reading: Australian Retirement Trust Voluntary Contribution