Yes, yet another rule to be aware of.
TL;DR
If you’re an S-Corp and pay yourself $150,000+ in W-2 wages, and are age 50+, this may affect you.
If your W-2 was over $150k in 2025, your Solo 401(k) employee catch-up contributions must now go into a Roth Solo 401(k).
If you're under the $150,000 limit, or if you’re a Sole Proprietor or LLC and not an S-Corp, keep on hustling; you dodged the bullet.
We are not talking about the Backdoor Roth IRA here. That is a completely separate account with its own contribution limits and rules. Yes, you can have both accounts at the same time.
I’m a little late writing about this one; luckily, it probably won’t affect many people.
Starting January 1, 2026, a new SECURE 2.0 provision kicks in that forces some retirement savers age 50+ to make their catch-up contributions into a Roth Solo 401(k) in after-tax dollars instead of pre-tax. No opt-out.
Here's the part that should make most of you exhale: this rule probably doesn't apply to you.
Who Actually Gets Hit
The rule only looks at FICA wages — the number in Box 3 of a W-2. If you don't have a W-2, you don't have FICA wages. And if you don't have FICA wages, the rule has nothing to grab onto.
| Your setup | Subject to the rule? |
|---|---|
| Sole proprietor / Schedule C | No — self-employment income isn't FICA wages |
| Single-member LLC (disregarded) | No — same reason |
| Partner receiving a K-1 | No |
| S-corp paying yourself a W-2 salary | Maybe — depends on the number |
That last row is where the rubber hits the road. Like me, plenty of freelancers form an S-corp specifically to save on self-employment tax — which means you do have a W-2, and this rule can absolutely find you.
The Actual Number
If you're in that S-corp bucket, here's what matters:
Threshold: $150,000 in FICA wages (Box 3, W-2)
Which year counts: the prior calendar year — 2025 wages determine your 2026 requirement
What's affected: only the catch-up portion, not your regular employee or employer contributions.
So if your 2025 W-2 salary was under $150,000, you're fine — full pretax-or-Roth choice on your catch-up money in 2026. If it was over, the catch-up piece has to be Roth. Period.
What is the "Catch-Up" part of the Solo 401(k)?
For 2026, once you turn 50, you get to stack extra money on top of the regular $24,500 employee deferral limit:
Ages 50–59: additional $8,000
Ages 60–63: additional $11,250 (the "super" catch-up SECURE 2.0 created)
If you clear the $150,000 threshold, that extra chunk — $8,000 or $11,250 — has to land in a Roth account. Everything below it is still your call.
With most providers now, you can have a pre-tax Solo 401(k) AND a Roth Solo 401(k) sitting side by side on the same plan. Your contribution limits are shared between the two accounts; you don’t get double. Be aware that the two Solo 401(k) accounts must be with the same provider, on the same plan.
For example, it's illegal to have a pre-tax Solo 401(k) with Schwab and a Solo 401(k) Roth with Fidelity. The IRS will disallow contributions and make your life hell.
Need to brush up on how the Solo 401(k) works? Read the Solo 401(k) guide here or ask the Digital Chris in the bottom right-hand corner some questions.
If you’re a high-income earner and want to max out your Solo 401(k) to the total contribution limit, the Mega Backdoor Roth article is for you.
Your Move
Pull last year's W-2 (if you're an S-corp) and check Box 3. If it was over $150k:
Call your Solo 401(k) provider and ask point-blank: Is it possible to open a Roth Solo 401(k) that sits next to your existing pre-tax one on the same plan? I’m with Schwab, and they have pre-tax and Roth.
Don't wait until December to find this out.
This is one of those rules that sounds intimidating in the headlines and turns out to be a non-event for most self-employed people. But "most" isn't "all" — and if you're the S-corp freelancer with a fat salary line, this is the year to actually check the number instead of assuming.
The 'don't blame me' blurb: I am not a financial advisor, portfolio manager, or accountant. This is not tax or investment advice; it's information to get you going. Please consult your trusty professional and do your due diligence. Carry on!
If you're 50+, self-employed, and someone just told you your catch-up contributions have to be Roth now, don't panic yet. Most freelancers are completely exempt — and here's why.
The "should I be an S-Corp" question comes up constantly with freelancers and self-employed. So I built a calculator to settle it — here's the real tradeoff between paying 15.3% self-employment tax on everything you make versus running payroll and filing two tax returns.
Yes, you the importer paid the tariff, and it was illegal. The Supreme Court said so back in February — here's how solo operators like us actually get that money back.
The President's posts move oil, bonds, and your index funds. Wall Street can now get them milliseconds early for $100k a month. We can't.
The Mega Backdoor Roth is a strategy for freelancers with a Solo 401(k) to contribute beyond the normal employee and employer limits, using after-tax contributions that get converted to Roth
Two IRS rules let you access retirement money before 59½ without the 10% penalty. Here's how Rule 72(t) and the Rule of 55 actually work for freelancers.
Freelancers get access to some of the best tax-advantaged accounts in the tax code. Here's the full list — what each one does, how it's taxed, and which ones to open first.
Your sub-5% mortgage costs you less than your portfolio earns. That gap is free money — make extra mortgage payments, or invest. Let's run the numbers on $200 and $500 a month.
That 1% annual advisor fee doesn't sound like much. But on a $630,000 portfolio over 17 years, it quietly drains nearly $480,000 from your retirement — while the same money in a low-cost index fund does none of that. Here's what the financial industry would prefer you never actually calculate.
Someone in the Trump administration is leaking market-moving information. Your portfolio is the loser.
Form 5500-EZ exists to prove your Solo 401(k) is still alive and in compliance. File it late, and the penalty can decimate your retirement savings. Here's everything you need to know.
The income tax system works like a layer cake, not a cliff. Understand the 2026 federal tax brackets, how your freelance income flows to taxable income, and how Solo 401(k) and HSA contributions slice off the most expensive layers.
Freelancers can shelter up to $96,250 in 2026 using three tax-advantaged accounts. Learn which to open first and how much you can contribute.
Rebalancing is simply bringing your portfolio back to your target allocation. That’s it. No spreadsheet pain. No Wall Street jargon. Better yet, I have a nifty calculator to do the math.
Here we go, 2026! What could possibly go wrong, right?
Read about the new 2026 limits for the i401(k), also known as a Solo 401(k). Plus the Roth and Backdoor Roth IRA, and the awesome HSA.
How did 2025 turn out? - The U.S. market coped with some novel pressures and the vibecession continued. Meanwhile, International outperformed.
Did you have a terrible year financially? That painful low-income year might at least have a silver lining. If you had a bad year, your marginal tax rate will be lower than usual, so now might be a good time for a Roth conversion.
Max out the contributions to your retirement accounts before year's end. Now is the time to get your QuickBooks in order and talk to your accountant before the end of the year. Don’t wait.
The freelancer investment trinity — i401(k), HSA, and Backdoor Roth IRA.
The Robinhood Gold Card is a great deal for investors; instead of trying to use points to shop or travel, we’ll invest the unlimited 3% cash back and spend big later in life.
Are you freelance or self-employed in your 40s or 50s without retirement savings? You're not screwed. Here's the math: Start investing $2K/month at 50, and you'll have $600K by 65. The biggest mistake isn't starting late—it's not starting today.
Freelancers, let's talk about the elephant in your home office: retirement savings.
The ‘Retirement in the USA: The Outlook of the Workforce - 2025’, survey from the Transamerica Center for Retirement Studies is out, and it’s an eye-opener.
While your traditionally employed friends have HR departments force-feeding them 401(k) plans, you're busy trying to figure out if you can expense that second monitor as a business expense.
How much emergency fund do freelancers and self-employed individuals need? Compare HYSA, Treasury ETFs like VBIL, and other options for self-employed workers. State tax savings tips included
The Roth IRA — With simple set-and-forget investing, it’s easy to have around $1 million in retirement.
It’s often misunderstood how the states and feds tax us. A misconception is that once someone hits a certain income, all of their hard-earned money gets taxed at a higher rate. This is not the case.
2024 — The markets, a Trump election victory, and whatever happened in your freelance industry. What did it all mean for our i401k portfolio and the goal of chill-retirement?
Forget the outdated retirement stereotype of working until you drop, then shuffling off with a gold watch. As a solopreneur or freelancer, you can design something better: working less while your investments pick up the slack. The question is: how big does that investment portfolio need to be?
The Three-Fund Portfolio — Freelancers, it’s pretty much the only investment we need in the stock market. U.S. Stocks, International Stocks, plus Bonds
More in our series of ‘More for us, less for you IRS!’
Below is a list of the various tax-advantaged accounts we can have as freelancers. Learn the ways of the force, I mean accounts. As freelancers, investing is our ultimate side hustle.
You're busy invoicing, not studying ETFs. A target-date fund is the one-fund retirement plan for freelancers: buy once, automate the deposits, and let time do the heavy lifting.