Charles Schwab Individual 401(k) review

Schwab's Individual 401(k) matches Fidelity on cost: its page states there is no fee to open or maintain an account, a $0 minimum opening deposit and $0 account open or maintenance fees, with the usual caveat that fund expenses and commissions may apply. It is open to sole proprietors, owner-only corporations, partnerships and independent consultants with no employees other than a spouse. Both traditional and Roth versions are offered. Schwab lists the 2026 elective deferral at $24,500 and the maximum annual limit at $72,000, with catch-up contributions of $8,000 for ages 50 to 59 or 64 and older and $11,250 for ages 60 to 63. Setup is more paper-based than at newer providers: you complete and return an account application and adoption agreement, then send a contribution transmittal form with deposits, and Schwab defaults unmarked money to employee salary deferral. It ranks below Fidelity because the opening process takes more forms.

Who it is for

solo owners who already invest at Schwab

Price

$0 to open or maintain and $0 minimum deposit; fund expenses and commissions may apply.

There is no fee to open or maintain an account at Schwab. Minimum opening deposit: $0.
Quoted from the vendor pricing page on November 14, 2026.

Key features

• $0 account open or maintenance fees and a $0 minimum opening deposit
• Traditional and Roth Individual 401(k) versions
• Open to sole proprietors, owner-only corporations, partnerships and independent consultants with no employees other than a spouse
• 2026 maximum annual limit of $72,000 including employer profit sharing and salary deferrals
• 24/7 service and support and one-on-one investment help

Strengths and weaknesses

• Strength: No fee and no minimum to open
• Strength: Roth Individual 401(k) available
• Strength: Plan documents and pricing guide published on the page
• Weakness: Setup uses an account application and adoption agreement you complete and return
• Weakness: Not available once you have employees other than a spouse
• Weakness: Other account fees, fund expenses and commissions may apply

Key facts

• Account fee: $0
• Minimum deposit: $0
• Roth option: Yes
• 2026 limit: $72,000 plus catch-up

Where it ranks

Charles Schwab Individual 401(k) is No. 3 in our Best 401K Providers verdict.