Pick the Right One: Don’t Confuse CHASE Solo 401k with Advanced Solo 401k Setup

JP Morgan Chase recently launched a new Solo 401k under its Everyday 401k platform, designed specifically for self-employed individuals and working spouses. With recordkeeping provided by Vestwell and investment options managed by JP Morgan, this offering has generated quite a bit of attention. But self-employed individuals researching their options need to be careful: the Chase Solo 401k and an advanced, individually designed Solo 401k from My Solo 401k Financial are fundamentally different products — and confusing the two could cost you tens of thousands of dollars in missed tax savings and retirement wealth.

In this post, My Solo 401k Financial breaks down exactly what you get with each option, what the Chase Solo 401k is missing, and why thousands of self-employed individuals choose an advanced plan instead.

Watch: My Solo 401k Financial breaks down the key differences between the Chase Solo 401k and an advanced, individually designed Solo 401k plan

Who Qualifies for a Solo 401k?

Before comparing plan types, it helps to confirm eligibility. A Solo 401k is a 401(k) plan designed exclusively for self-employed individuals. Two requirements must be met:

Earned self-employment income — income derived from your own business activity
No non-owner, non-spouse full-time W-2 employees — a working spouse or co-owner does not disqualify the plan; only unrelated full-time employees do

Self-employment income is reported differently depending on your business structure:

Business Structure	Where to Find Self-Employment Income
Sole Proprietor / Single-Member LLC	Line 31 of Schedule C
S-Corp or C-Corp (or LLC taxed as such)	W-2 wages paid by your own corporation
Partnership / Multi-Member LLC	Line 14 of Schedule K-1 from the partnership
Working Spouse	May participate in the same Solo 401k — does not disqualify the plan

✅ Example: A married couple where both spouses actively work in an LLC taxed as an S-Corp can both participate in the same Solo 401k plan — as long as they have no unrelated full-time W-2 employees. This can dramatically increase the household’s annual retirement contribution.

What Is the Chase Solo 401k (Everyday 401k)?

JP Morgan Chase launched its Solo 401k offering under the Everyday 401k brand, with recordkeeping handled by Vestwell and investments managed by JP Morgan. It is a prototype plan — a standardized, off-the-shelf plan document that restricts participants to investments offered by Chase. The plan is not self-directed and does not support advanced features like the Mega Backdoor Roth, alternative investments, or participant loans.

Chase Solo 401k Fee Structure

Fee Type	Amount	Notes
Setup Fee	$350	One-time, paid at account opening
Annual Fee	$540 ($45/month)	Recurring each year
Asset-Based Fee	0.15% of balance	On a $100,000 balance, adds ~$150/year. Grows as your balance grows.
Spouse Participation	+$150/year	Additional annual fee if a working spouse joins the plan

⚠️ Important: The 0.15% asset-based fee is in addition to the flat annual fee. As your Solo 401k balance grows, this percentage-based fee compounds the total cost significantly. On a $500,000 balance, that’s an additional $750 per year — on top of the $540 annual fee.

What Is an Advanced Solo 401k from My Solo 401k Financial?

My Solo 401k Financial is a Solo 401k plan document provider and compliance specialist — not a brokerage or custodian. That means the plan is completely portable: you choose where to hold the assets. Clients regularly open accounts at Fidelity, Schwab, hundreds of banks and credit unions, and specialty custodians for cryptocurrency, real estate, or private equity. Having both a bank account and a brokerage account under the same Solo 401k trust is 100% acceptable — and many clients do exactly that.

ℹ️ Key Insight: You are not required to use Chase’s plan documents just because you bank at Chase. You can obtain your plan documents from My Solo 401k Financial and still open your brokerage or bank accounts wherever you prefer (note: based on experience and client feedback Chase won’t open accounts for solopreneurs that bring their own Solo 401k plan documents).

Feature Comparison: Chase Solo 401k vs. Advanced Solo 401k

Here is a comprehensive side-by-side comparison of what each plan offers:

Feature	Chase Solo 401k (Everyday 401k)	Advanced Solo 401k — My Solo 401k Financial
Mega Backdoor Roth	❌ Not Available	✅ Fully Supported
In-Plan Roth Conversions	❌ Not Available	✅ Yes
Alternative Investments (Real Estate, Crypto, etc.)	❌ No	✅ Yes
Participant Loan (up to $50,000)	❌ Not Available	✅ Up to $50,000
SECURE Act Tax Credits (up to $1,500)	❌ No	✅ Yes — auto-enrollment feature included
Checkbook Control	❌ No	✅ Yes
Brokerage / Bank Choice	Chase Only	✅ Hundreds of options (Fidelity, Schwab, Chase, and more)
Roth Solo 401k Sub-Account	Limited	✅ Roth sub-account
Plan Document Provider	Prototype (standardized)	✅ Individually designed plan document
1099-R Issuance Support	Limited	✅ Support included

The Mega Backdoor Roth: A Game-Changer the Chase Plan Doesn’t Offer

One of the most powerful — and most requested — features of an advanced Solo 401k is the Mega Backdoor Roth strategy. This strategy allows participants to make voluntary after-tax contributions to their Solo 401k — up to the overall annual limit — and then convert those funds to a Roth Solo 401k or Roth IRA, resulting in potentially tax-free growth and tax-free withdrawals in retirement.

2026 Contribution Limits

Contribution Type	2026 Limit	Available With Chase?	Available With Advanced Plan?
Employee Elective Deferrals (Pre-Tax or Roth)	$24,500 (plus $8000 if 50+ OR $11,250 if 60-63)	✅	✅
Employer Profit-Sharing Contribution	Up to 25% of W-2 / ~20% of net SE income	✅	✅
Voluntary After-Tax Contributions (Mega Backdoor Roth)	Up to overall cap of $72,000	❌ Not Available	✅ Fully Supported
Overall Annual Limit (2026)	$83,250	Partial	✅ Full limit accessible

✅ Example: A self-employed consultant with net self-employment income of $72,000 could potentially contribute the entire $72,000 as a voluntary after-tax contribution and then convert it to a Roth account — resulting in up to $72,000 of potentially tax-free retirement savings in a single year. That’s the power of the Mega Backdoor Roth Solo 401k. My Solo 401k Financial was the first Solo 401k provider to offer a plan that fully supports this strategy.

In addition to Mega Backdoor Roth contributions, an advanced Solo 401k from My Solo 401k Financial also supports in-plan Roth conversions — moving pre-tax funds already in the plan directly into a Roth sub-account within the same Solo 401k. This is a powerful tax planning tool that the Chase plan simply does not support.

Alternative Investments: The Key Differentiator

One of the most significant limitations of the Chase Solo 401k is its restriction to traditional investments — JP Morgan-managed funds, ETFs, and securities available on Chase’s platform. Self-employed individuals who want to diversify their retirement portfolios with real estate, private equity, precious metals, or cryptocurrency will find the Chase offering highly restrictive.

An advanced self-directed Solo 401k from My Solo 401k Financial allows participants to invest in a wide range of asset classes:

Investment Type	Chase Solo 401k	Advanced Solo 401k
Stocks, ETFs, Mutual Funds	✅ Chase/JP Morgan options only	✅ Any brokerage
Real Estate (Rental Property, Raw Land, Commercial)	❌	✅
Precious Metals (Gold, Silver)	❌	✅
Private Company Shares / Private Equity	❌	✅
Cryptocurrency	❌	✅
Promissory Notes / Tax Liens	❌	✅
Non-Recourse Leveraged Real Estate	❌	✅

✅ Example: With an advanced self-directed Solo 401k, you can purchase rental properties, raw land, or commercial real estate directly within your retirement account using checkbook control — simply write a check from the Solo 401k bank account. This level of control and diversification is simply not possible with Chase’s managed investment approach.

Solo 401k Participant Loan: A Critical Feature Chase Doesn’t Offer

An advanced Solo 401k participant loan allows you to borrow up to 50% of your account balance — not to exceed $50,000 — for any purpose. Whether you need liquidity for a business opportunity, real estate down payment, or personal financial need, the loan feature provides access to your own retirement funds without triggering a taxable distribution or early withdrawal penalty.

The loan is repaid with interest back to your own Solo 401k account, so you’re effectively paying interest to yourself. There is no indication that the Chase Solo 401k offers a participant loan feature — which is a significant limitation for self-employed individuals who may need flexible access to capital.

SECURE Act Tax Credits: Up to $1,500 That Chase Can’t Give You

A significant — and often overlooked — advantage of an advanced Solo 401k plan is eligibility for the SECURE Act tax credit. This credit provides $500 per year for three consecutive years (total of $1,500) and is triggered by the inclusion of an auto-enrollment feature in the plan documents.

My Solo 401k Financial builds the auto-enrollment feature into every advanced Solo 401k plan. The auto-enrollment feature establishes a default contribution percentage — but the participant retains the full right to opt out at any time. Importantly, opting out does not eliminate eligibility for the tax credit. The plan document includes the feature, qualifying you for the credit regardless of your actual contribution elections.

ℹ️ Info: The Chase Solo 401k does not include an auto-enrollment feature in its plan documents and therefore does not qualify for this SECURE Act tax credit. Over three years, that is up to $1,500 in free tax credits you may be leaving on the table. When factoring in this credit, the effective cost of a My Solo 401k Financial advanced plan over the first seven years can actually be negative — meaning you come out ahead even after paying for the plan.

7-Year Cost Analysis: Chase vs. Advanced Solo 401k

When evaluating plan costs, it’s important to look beyond the first year and consider the full long-term picture — especially given Chase’s asset-based fee that grows as your balance grows.

Provider / Scenario	Year 1 Cost	Annual Cost (Years 2–7)	7-Year Total
Chase Solo 401k (1 participant)	$890	$540/year	$4,130+
Chase Solo 401k (2 participants, with spouse)	$1,040	$690/year	$5,180+
Advanced Solo 401k — My Solo 401k Financial	$650	$125/year	$1,400
Advanced Solo 401k — After $1,500 Tax Credits	$150 (effective)	$125/year	−$100 (net savings!)

⚠️ Important: The Chase cost figures above do not include the 0.15% asset-based fee, which compounds as your balance grows. On a $300,000 balance, that’s an additional $450 per year — increasing the 7-year total for Chase significantly beyond the figures shown.

How to Open an Advanced Solo 401k with My Solo 401k Financial

Opening an advanced Solo 401k through My Solo 401k Financial is a fast and straightforward process:

Visit mysolo401k.net and complete the simple online application — just 10 questions.
Submit the application and complete payment. My Solo 401k Financial prepares your plan documents within the same business day.
Open your brokerage and/or bank accounts at the institution(s) of your choice. The My Solo 401k Financial team is hands-on in helping you open accounts, transfer any existing retirement funds, and begin making contributions.

✅ Example: A self-employed consultant currently banking at Chase can open an advanced Solo 401k through My Solo 401k Financial, keep their existing Chase brokerage accounts as part of the plan, and gain access to Mega Backdoor Roth contributions, participant loans, alternative investments, and the $1,500 SECURE Act tax credit — all without moving a single dollar away from Chase.

Ready to Upgrade from a Basic Brokerage Solo 401k to an Advanced Plan?

Don’t leave the Mega Backdoor Roth, participant loans, alternative investments, and up to $1,500 in SECURE Act tax credits on the table. My Solo 401k Financial makes it simple to get the plan documents you need — with full ongoing compliance support included.

Next Steps: Open Your Advanced Solo 401k Account Today →

Remember: This information is provided for educational purposes only and should not be construed as tax, legal, or investment advice, nor is it a solicitation. When making an investment decision, please consult with your qualified tax, legal, and financial professionals.