Keep More of What You Earn: The $83,250 Fidelity Solo 401k Strategy
If you’re self-employed and you’re not maximizing your Solo 401k, you may be leaving tens of thousands of dollars on the table every year. Let’s break down exactly how solopreneurs can contribute up to $83,250 in 2026 to a Fidelity Solo 401k — using advanced plan documents that unlock the powerful Mega Backdoor Roth strategy.
Watch: How to contribute up to $83,250 to your Fidelity Solo 401k in 2026 using the Mega Backdoor Roth strategy
Who Is Eligible for a Solo 401k?
Before diving into the $83,250 strategy, you need to confirm you qualify. A Solo 401k — also called an Individual 401k or Self-Employed 401k — is available to self-employed individuals and owner-only businesses. There are two core eligibility requirements:
- Earned self-employment income — This is income reported on Schedule C (sole proprietorship or single-member LLC), a W-2 from your own S-corp or C-corp, or Line 14 of a K-1 from a partnership.
- No non-owner, non-spouse full-time W-2 employees — The business must be owner-only. A spouse who earns self-employment income from the business may also participate.
Top Solo 401k Eligibility Questions Answered
Why Pair Fidelity Accounts with My Solo 401k Financial Plan Documents?
Fidelity is one of the most popular brokerage platforms in the country, offering low fees, broad investment options, and a trusted name. However, Fidelity’s basic Solo 401k plan comes with significant limitations — it does not support:
- The Mega Backdoor Roth (voluntary after-tax contributions + in-plan Roth conversion)
- Solo 401k participant loans
- The $1,500 Solo 401k tax credit for new plans
- Alternative investments — real estate, crypto, private placements, pre-IPO stock
The good news: Fidelity will open Solo 401k accounts for clients who bring their own plan documents. That’s where My Solo 401k Financial comes in. Customers obtain IRS-approved Solo 401k plan documents from My Solo 401k Financial — drafted specifically for their self-employed business — and then hold their investment accounts at Fidelity.
💡 Example: How It Works
Maria is a freelance graphic designer operating as a sole proprietor. She obtains an advanced Solo 401k plan from My Solo 401k Financial, which supports the Mega Backdoor Roth and participant loans. She then opens her Solo 401k accounts (traditional, Roth, and after-tax) at Fidelity, using Fidelity’s brokerage platform for investments. My Solo 401k Financial assists with paperwork and ongoing Solo 401k compliance — Maria gets the best of both worlds.
Fidelity Basic Solo 401k vs. My Solo 401k Financial Plan at Fidelity
The Three Solo 401k Contribution Buckets for 2026
One of the most powerful features of the Solo 401k is that it offers the highest contribution limits of any self-employed defined contribution plan. This is possible because solopreneurs can fill up multiple distinct contribution “buckets” simultaneously — something employees in a standard 401k plan cannot do.
Bucket 1: Employee Elective Deferral (Pre-Tax or Roth)
As the employee of your own business, you can contribute up to 100% of your compensation as an elective deferral, up to the annual limit. For 2026, this is $24,500. If you are age 50 or older, a catch-up contribution applies:
- Ages 50–59 and 64+: additional $8,000 catch-up = $32,500 total
- Ages 60–63: additional $11,250 catch-up (SECURE 2.0 super catch-up) = $35,750 total
Bucket 2: Employer Profit-Sharing Contribution
As both the employer and employee of your business, you can also make a profit-sharing contribution of up to 25% of W-2 compensation (for S-corp or C-corp owners) or 20% of net self-employment compensation equal to line 31 of Schedule C less one-half of the self-employment tax (for sole proprietors and single-member LLCs). These contributions are pre-tax and reduce your taxable income.
Bucket 3: Voluntary After-Tax Contributions (Mega Backdoor Roth)
This is the most powerful and often overlooked bucket. With an advanced Solo 401k plan like the one offered by My Solo 401k Financial, you can make voluntary after-tax contributions — up to the full plan limit minus your employee and employer contributions already made. These funds are then converted to a Roth account, creating the “Mega Backdoor Roth.” Key facts:
- Contribution limit is dollar-for-dollar of self-employment compensation (no percentage cap)
- After-tax funds must be held in a separate after-tax sub-account within the Solo 401k
- Conversion to a Roth account can be done within the plan (in-plan Roth conversion) or to a Roth IRA
- Your plan documents must specifically allow for voluntary after-tax contributions — Fidelity’s basic plan does not include this feature
2026 Solo 401k Contribution Buckets at a Glance
Step-by-Step: How to Reach $83,250 in 2026
Let’s walk through a real-world example to show how a solopreneur can contribute over 83% of their self-employment income to their Solo 401k in 2026.
📊 Example: The $83,250 Strategy for a 60–63 Year Old Solopreneur
Assumptions:
- Age: 60–63 (qualifies for SECURE 2.0 super catch-up)
- Self-employment compensation: $100,000 (Schedule C net income, less ½ SE tax)
- No day-job 401k contributions
- Solo 401k plan allows voluntary after-tax contributions (My Solo 401k Financial plan)
📊 Example: Ages 50–59 Scenario
Not quite 60–63? No problem. The same strategy at ages 50–59 yields up to $80,000 in total contributions, using the standard $8,000 catch-up instead of the $11,250 super catch-up. Still an extraordinary contribution rate for any self-employed individual.
Ready to Unlock the $83,250 Solo 401k Strategy?
Whether you’re just getting started or ready to maximize your Mega Backdoor Roth contributions, My Solo 401k Financial can help you set up the right Solo 401k structure — with accounts at Fidelity or the brokerage of your choice.
Next Steps:
✅ Open Your Solo 401k Account Today
