Solo 401(k) for Self-Employed South Florida Professionals: Shelter $69,000+ Per Year
If you're self-employed in Fort Lauderdale or Miami, a Solo 401(k) lets you contribute up to $69,000 per year — far more than a SEP-IRA. Here's how South Florida professionals are using it.
South Florida's self-employed professionals — consultants, doctors, lawyers, real estate investors, creative agencies — often max out a SEP-IRA and think they've done everything they can for retirement savings. They're wrong.
A Solo 401(k) lets you shelter up to $69,000 per year ($76,500 if you're 50+), far exceeding the SEP-IRA limit. And in Florida's zero-income-tax environment, every dollar of federal deduction counts even more.
Solo 401(k) vs. SEP-IRA: The Comparison
On $200,000 of net self-employment income:
| SEP-IRA | Solo 401(k) | |
|---|---|---|
| Max Contribution | $50,000 (25%) | $69,000 |
| Extra Shelter | — | $19,000 more |
| Roth Option | No | Yes |
| Loan Provision | No | Yes (up to $50K) |
Why This Matters in South Florida
Fort Lauderdale and Miami have some of the highest costs of living in the Southeast. High earners here need to be aggressive about building tax-advantaged wealth. The extra $19,000 in annual deductions from a Solo 401(k) vs. SEP-IRA means roughly $5,000-$7,000 in additional federal tax savings per year.
Over 10 years at 8% returns, that extra $19,000/year compounds to $298,000.
Mega Backdoor Roth: The Advanced Play
If your Solo 401(k) plan allows after-tax contributions and in-plan Roth conversions, you can funnel even more into tax-free growth. This is the Mega Backdoor Roth — and it's particularly valuable for South Florida professionals who expect to stay in high tax brackets through retirement.
Who Should Set This Up
- Self-employed professionals with no W-2 employees (spouse is OK)
- Earning $100K+ through self-employment
- Fort Lauderdale/Miami consultants, medical professionals, attorneys, and creatives
- Real estate professionals with active income
- Already maxing out simpler retirement options
How to Get Started
Most Solo 401(k) plans can be opened with providers like Fidelity, Schwab, or Vanguard in under an hour. The plan must be established by December 31, but you can fund it until your tax filing deadline (including extensions).
Run your tax assessment to see how much a Solo 401(k) could save you based on your specific South Florida income profile.
Related Reading
See How Much You're Overpaying
Run a free 2-minute assessment and get your personalized tax leak report — with IRS-backed strategies and IRC code citations.
Run My Free Assessment