Wall Street banks are pushing Solo 401(k) plans, a retirement vehicle once limited to freelancers, as more Americans turn to self‑employment. By offering higher contribution limits and tax deferral, the plans attract gig workers seeking to shield a larger share of their income.

Financial advisers note that Solo 401(k)s allow up to 25% of net self‑employment earnings to be contributed, capped at $66,000 for 2023. This flexibility boosts after‑tax savings and positions the plan as a competitive alternative to traditional 401(k)s and IRAs.

Wall Street’s push comes amid a surge in gig economy participation and a tightening of corporate retirement benefits. Firms see Solo 401(k)s as a way to attract and retain talent without expanding traditional benefit packages, potentially reshaping the retirement‑planning market.

Investors should monitor how the adoption rate of Solo 401(k)s affects asset flows into self‑employed retirement funds. Analysts predict that increased contributions could lift the market value of related financial products, while regulators may scrutinize the plans’ compliance with IRS rules.