As a Certified Financial Planner™ serving Northeast Florida, I often meet solo business owners who think retirement plans are too rigid or complicated for their unpredictable income. A Solo 401(k) can offer an appealing alternative, with higher contribution limits, flexible timing, and potential tax advantages designed for the way independent earners actually operate.

Solo 401(k)s are designed for self-employed individuals with no full-time employees — a group that includes 1099 contractors, independent consultants, and sole proprietors across industries. They’re commonly used by attorneys running solo practices, healthcare professionals doing contract work, and consultants in fields like IT, marketing, and finance. If you’re the only full-time employee in your business (you can still employ a spouse), a Solo 401(k) may be an effective tool to consider.

High Contribution Limits, Even on Uneven Income - In 2025, you can contribute up to $23,500 as the “employee,” plus up to 25% of your net business income as the “employer.” If you’re 50 or older, you may also be eligible for an additional $7,500 in catch-up contributions. These features allow for larger contributions than many other account types, and contributions can be made when your cash flow allows, rather than on a fixed schedule.

Designed for Irregular Cash Flow - Unlike traditional retirement plans, the Solo 401(k) can work with — not against — the realities of solo business ownership. Whether your revenue is lumpy, seasonal, or based on big-case wins, you have the flexibility to make one-off contributions when your cash flow allows.

Roth Flexibility for Long-Term Tax Strategy - If you expect your income to remain high for years to come, the Roth Solo 401(k) provides the ability to make after-tax contributions, with qualified withdrawals generally tax-free in retirement. This can be one way to diversify your tax exposure over time, depending on your situation.

Investment Flexibility That Fits Your Strategy - With a Solo 401(k), your investment choices depend on the provider. Options may include mutual funds, ETFs, and individual securities. In some cases, providers also allow for alternative assets such as real estate or private equity, though these involve unique risks and may not be appropriate for all investors.

Comparison to SEP or IRA - SEP IRAs and Traditional or Roth IRAs remain effective tools for many individuals, but their contribution structures differ. For example, Roth IRAs cap out at $7,000 in 2025 — and high earners may face income limits. SEP IRAs allow only employer contributions, whereas Solo 401(k)s permit both employee and employer contributions, as well as Roth features. The best choice depends on your income, goals, and business structure.

Final Thoughts: The Solo 401(k) offers a mix of control, flexibility, and long-term growth potential. It’s not just a retirement account, it’s potentially a way to align your retirement savings strategy with how you actually operate: independently, opportunistically, and with an eye on the future. If your income doesn’t come in like clockwork, your retirement plan shouldn’t have to either.

Nelson Greene, CFP® EA

Nelson is a Jacksonville-based financial advisor and co-owner of Highline Private Wealth. With a background in banking, institutional wealth, and financial technology, he specializes in tax strategy and long-term planning. Nelson is a Certified Financial Planner™ (CFP®), Enrolled Agent (EA), and holds a Series 65 license. nelson@highlinepw.com

Highline Private Wealth, LLC (“Highline”) is a Registered Investment Adviser. This content is intended to provide general information about Highline. It is not intended to offer or deliver investment advice in any way. Information regarding investment services are provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable.

Additional Important Disclosures may be found in the Highline Form ADV Part 2A. For a copy, please click here.