ShareBuilder 401k Introduces Roth 401(k) Feature to Solo 401(k) Saver

Post-tax contributions provide an option for the self-employed who want tax-free withdrawals in retirement

SEATTLE--(BUSINESS WIRE)--ShareBuilder 401k, a pioneer in affordable, all-ETF retirement solutions for small and mid-size businesses including the self-employed, today announced the addition of Roth 401(k) deferrals to its proprietary Solo 401(k) platform called Solo 401(k) Saver. The Roth 401(k) feature enables business owners and any employees to make post-tax contributions to their 401(k) accounts no matter how much they earn, allowing for tax-free withdrawals of both contributions and earnings in retirement. ShareBuilder’s employer-based 401(k) and Solo 401(k) Plus offerings have included Roth since 2006.

Unlike traditional pretax 401(k) contributions, Roth 401(k) deferrals are funded with after-tax dollars — meaning account holders won’t owe taxes on those funds when they retire and begin making withdrawals. For the self-employed enrolled in ShareBuilder’s Solo 401(k) Saver, Roth contributions are available as an employee deferral option, up to the 2026 IRS limit of $24,500 for participants under age 50. Employer contributions to the plan remain tax-deferred, as they always have.

The addition is particularly valuable for the self-employed who expect to be in a higher tax bracket in retirement, or who prefer more control over their future tax liability. Many retirement savers choose to split contributions between traditional and Roth accounts to hedge against tax uncertainty — a strategy now fully available within the ShareBuilder Saver product. It’s always good to connect with your tax advisor before determining what is right for you.

“Self-employed and owner-only shops deserve the same retirement planning flexibility that employees at larger companies have always had,” ShareBuilder 401k CEO Stuart Robertson said. “Adding Roth 401(k) deferrals is a direct response to what our customers have been asking for – a low-cost, easy to use Solo 401(k) plan with robust tax management features. Tax rates are unpredictable, and giving savers the option to pay taxes now and withdraw tax-free later is a meaningful tool — especially for business owners who may earn too much to consider a Roth IRA and may see their income and tax situation change significantly over time.”

Existing and new ShareBuilder Solo 401k Saver customers can begin making Roth deferrals immediately. Clients or prospects with questions about getting started can contact their Customer Success Manager or visit the company’s website for additional resources and guidance.

About ShareBuilder 401k

ShareBuilder 401k is a leading digital provider specializing in low-cost, all-ETF retirement products for small and mid-size businesses including the self-employed. Founded in 2005 and serving over 6,500 businesses nationwide, ShareBuilder 401k serves as a pioneer in index-based 401(k) plans, digital quoting, and investment management (ERISA 3(38)) services. The company is dedicated to closing the retirement savings gap by providing cutting-edge technology, transparent pricing, and quality education to business owners of all sizes.