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Carry vs Charles Schwab

Launched in 2022, Carry is a modern solo 401k platform with full onboarding and compliance support, integrated investment platforms*, a no-fee robo-advisor, and the ability to contribute up to $69,000 and invest it with tax-free compounding into any asset class (including alternative assets).

How is Carry different from the Charles Schwab Solo 401k?

Charles Schwab offers a basic solo 401k plan that’s free to set up, but lacks many features compared to the Carry Solo 401k Plan. Carry offers both pre-tax and Roth accounts, while Charles Schwab only offers a pre-tax account. With Carry, you can invest in any asset class*, including alternative assets, while you can only invest in traditional assets with Charles Schwab. Furthermore, Carry is a modern solo 401k experience, allowing you set up your account in under 10 minutes, make contributions and invest all through the Carry App. Charles Schwab’s Solo 401k still requires you to mail in a physical check for contributions.

Carry gives you checkbook control

With Charles Schwab, your investment options are limited to traditional assets within their platform. With Carry, you get checkbook control over your investment account and can either invest in traditional assets directly from the Carry app, or invest in alternative assets like crypto and real estate*.

Carry has both pre-tax and Roth

The Carry Solo 401k Plan comes with both pre-tax and Roth accounts. You can choose your tax advantage each year (tax deduction vs tax-free withdrawals in retirement). You can also contribute 3x more into a Roth solo 401k using our mega backdoor feature. Charles Schwab only offers a pre-tax account.

Integrated platform with modern interface

With Carry, the signup process is fast and simple, and can be done in under 10 minutes. You can set elections, make contributions, and invest your funds all directly through the app*. Charles Schwab still requires that you mail in a check if you want to contribute money to your account.

FeaturesCarry Solo 401kCharles Schwab Solo 401k
Cost$299/year for unlimited investments.*Free to set up.
Roth option
Mega backdoor Roth
Solo 401k loan
Investment optionsAny asset class*Only traditional assets like stocks, mutual funds, ETFs, bonds.
Making contributionsOnline through the Carry appMail in a physical check
Alternative investments
Checkbook control
RolloversYes, from most retirement plansOnly 401k plans, no IRAs
Invest in crypto
Invest in NFTs
Invest in real estate
Invest in private equity

Why business owners love Carry

The Carry Solo 401k Plan offers all the best features of a solo 401k, and nothing you don’t need as a business owner. It’s designed to give entrepreneurs and freelancers the power and flexibility to choose their preferred tax advantage each year, and get mega-sized contribution limits compared to other retirement plans like a 401k or SEP IRA.

Choose your tax advantage

With Carry, you can choose to get a tax deduction of up to $69,000 for 2024 or put the entire amount into a Roth solo 401k and get tax-free withdrawals in retirement. You can also mix and match, and allocate your funds based on what makes the most sense for you.

A modern all-in-one platform

Many free prototype plans, like Charles Schwab, still require that you mail in a physical check if you want to make a contribution. With Carry, you can make contributions, set elections, sign documents, and even invest your funds all within the Carry app*.

Access to alternative assets

Charles Schwab only lets you invest in traditional assets like stocks, bonds, and mutual funds. The Carry Solo 401k is a self-directed plan, opening the door to asset classes beyond traditional assets. Easily invest in alternative asset classes like real estate, crypto, NFTs, and even private equity*.

A mega-sized Roth account

Charles Schwab gives you a pre-tax account, but no option for Roth contributions. When you sign up with Carry, you get both pre-tax and Roth solo 401k accounts. Contribute up to $23,000 into your Roth solo 401k, or up to $69,000 into your Roth solo 401k with our mega backdoor conversion.

Take a solo 401k loan

Carry supports the solo 401k loan feature, allowing you to borrow up to 50% of your account value, up to a maximum of $50,000.

Prototype vs non-prototype plans

Charles Schwab offers a free prototype plan, which is a basic solo 401k with minimum features. You don’t get a Roth account, no option for a mega backdoor Roth solo 401k, and you still have to mail in physical checks to make contributions.

Carry is a modern take on the solo 401k plan. You’ll get all the best features, like a Roth account, mega backdoor, full onboarding and compliance support, and integrated investment platforms*.