I am self employed and currently max out my Roth IRA. I have a brokerage account that I invest in a few stocks and etfs as well. I just learned about Solo 401k. I dont sell any of my holdings in my brokerage account and plan to hold most (if not all) of them until retirement. Since I am not day trading, what would be the benefit of starting a Solo 401k over my brokerage account?
Solo 401k vs Brokerage Account
byu/EverythingIsTaken109 ininvesting
Posted by EverythingIsTaken109
3 Comments
Tax deduction on contributions, deferred taxation on dividends.
if you’re asking this then what do you think are the benefits of the Roth IRA that you’re maxing out now?
So I could not remember it right so asked google so I didn’t say dumb shit. The limits are higher. It is tax deferred. Long story short different tax vehicles for different needs. You say brokerage I assume you mean that the roth ira is inside that. If its a normal brokerage than its post tax money.
See below
The **401(k) contribution limit for 2026 is $24,500** for employee salary deferrals. The total contribution limit, including employer contributions, is **$72,000**, which can increase to **$80,000** if the employee is age 50 or older.
SIMPLE IRA (2026): $17,000 standard; catch-up: $4,000 (age 50+) — higher limits for small employers (≤25 employees): $18,100 standard and catch-up differences apply; employer match/nonelective rules vary.
Roth IRA and Traditional IRA (combined limit, 2026): $7,500 standard; catch-up: $1,100 (age 50+). Roth eligibility phases out by MAGI: single $153,000–$168,000 (full under $153k), married filing jointly $242,000–$252,000 (full under $242k)