Skip to content

Roth Solo 401k

The Roth Solo 401k offers a powerful tax-free solution for your retirement savings. The plan is funded by after-tax dollars, which means you gain tax-free growth, tax-free investments, and tax-free withdrawals. Although the Roth Solo 401k does not give a tax break up front, it does offer powerful tax solutions over the long term.

The Roth Solo 401k combines the advantages of the Solo 401k with the tax benefits of the Roth IRA. 

High Contribution Limit & No Income Restriction

The Roth Solo 401k allows up to $30,000 in after-tax dollars to be contributed per year (for 2023) while the Roth IRA only allows a maximum of $7,500 in annual contributions. Unlike the Roth IRA, there is no income restriction to contribute to a Roth Solo 401k.

The plan’s high contribution limit allows participants to save large amounts of tax-free dollars for retirement.  Those savings can be grown, invested, and diversified to become a secure, tax-free source of income for retirement. If passed on to one’s heirs, it would provide a tax-free inheritance for them.

Proverbs 13:22

“A good man leaves an inheritance to his children’s children.”

Other Advantages

Checkbook Control

Participants of the Roth Solo 401k Plan offered by Sense Financial have checkbook control over the account.  The participant is trustee of the account and can invest the funds by simply writing a check or wiring funds.  Investments can be made simply and quickly.

Participant Loan

The Roth Solo 401k allows a loan to be made from the account at any time and for any purpose.  Participants can borrow up to 50% of the account or $50,000, whichever is less.  Loans can be used for purposes such as paying tuition, lowering personal debt, or investing in the business.

UBTI Exempt

Purchases of debt-financed property with the Roth Solo 401k are not subject to UBTI tax, whereas using an IRA will trigger the UBTI tax (which is approximately 35%).  Using a Roth Solo 401k to purchase leveraged property is not subject to UDFI rules and therefore benefits from exemption from the UBTI tax.


The Roth Solo 401k is easy to administrate.  Decisions involving the fund do not require custodial consent, thereby eliminating additional fees and delays. Other retirement accounts require a custodian’s consent, so the plan holder will incur costs such as holding fees and transaction fees.  The Roth Solo 401k makes it simple.

What our clients are saying:

Tony S

I started a Solo 401K plan with Dmitriy’s Sense Financial in 2015. It has been a great experience since then and the Solo 401k plan has been a wonderful tool. 

Tony S. – Skillman, NJ

Ben D.

In my opinion, anyone that owns their own business should have a Solo 401K, and I would highly recommend Sense Financial – you will not be disappointed!

Ben D. – Spokane, WA

Sandra H

Dmitriy and his staff have been incredibly kind, helpful, and responsive while I have been going through the process of setting up my Solo 401k plan.

Sandra H. – Chicago, IL

Alternate investment options with your self-directed account:

Real Estate

Precious Metals

Private Business

Stocks & Bonds

Private Lending


Investments That Make Sense!

It’s Your Money. It’s Your Future. Invest Your Way.

Our expert team is always ready to answer you! Give us a call at (949) 228-9394. You can email us at

Sign up for our newsletter and receive $100 Discount on our services
This is default text for notification bar