Can I Open a Solo 401(k) as a Self-Employed Expat Abroad?
Self-employed U.S. expats can open and contribute to a solo 401(k) if they have no full-time employees other than a spouse. For 2026, you can defer up to $23,500 as an employee plus up to 25% of net self-employment earnings as employer contributions, for a combined maximum of $70,000 ($77,500 if age 50 or older) (IRS: One-Participant 401(k) Plans).
Contribution limits for 2026 (2025 Tax Year):
| Component | Limit |
| Employee elective deferral | $23,500 ($31,000 if 50+) |
| Employer profit-sharing (25% of net SE income) | Up to $46,500 |
| Total combined maximum | $70,000 ($77,500 if 50+) |
FEIE interaction is critical:
- FEIE reduces “earned income” for contribution purposes, shrinking or eliminating the employee deferral
- FTC preserves full earned income, leaving the full $23,500 deferral and 25% profit-sharing available
- Employer contribution is based on net SE earnings after the deductible portion of SE tax, not gross revenue
Expat advantages of a solo 401(k):
- Roth option: many solo 401(k) providers offer a Roth sub-account, letting you contribute after-tax dollars for tax-free growth
- Loan provision: You can borrow up to $50,000 from your own plan
- No PFIC risk: unlike foreign investment funds, a U.S.-based solo 401(k) holds U.S. investments with no PFIC complications
- Creditor protection: ERISA protections apply even while living abroad
Providers that accept expat applications include Fidelity, Charles Schwab, and Vanguard, though some require a U.S. mailing address. TD Ameritrade (now Schwab) historically accepted foreign addresses.
For broader planning options, see our Expat Retirement Accounts guide.
Last updated on April 29, 2026
