JPMorgan launches solo 401(k) for self-employed entrepreneurs

Published 16/07/2025, 14:38
© Reuters.

NEW YORK - JPMorgan Chase, currently trading near its 52-week high at $290.14, announced today the launch of Solo 401(k), a retirement solution specifically designed for self-employed individuals and solo entrepreneurs with no full-time employees. According to InvestingPro data, JPMorgan maintains its position as a prominent player in the banking industry, with a substantial market capitalization of $789 billion.

The new offering expands the firm’s Everyday 401(k) product line, providing small business owners the ability to set up retirement plans online with flexible investment options, including J.P. Morgan Asset Management’s ready-to-use solutions or customized plans. The bank’s strong financial health is reflected in its impressive track record of maintaining dividend payments for 55 consecutive years, with a current dividend yield of 1.95%.

Solo 401(k) allows eligible users to save up to $70,000 annually, with additional amounts available for those over 50. Business owners with employed spouses can include them in the plan, potentially doubling the household’s retirement savings capacity.

"The launch of the Solo 401(k) marks a significant milestone in our commitment to enhance retirement planning for solo entrepreneurs," said Steve Rubino, Head of Retirement at J.P. Morgan Asset Management, in a press release statement.

The timing aligns with findings from a recent Chase survey indicating that while 80% of business owners contribute to retirement accounts, only 44% are satisfied with their contribution levels.

Vestwell will continue to serve as the recordkeeper for the expanded Everyday 401(k) platform. The plan offers both pre-tax and Roth contribution options with tax-deferred growth potential.

JPMorgan Chase (NYSE:JPM) reported $4.6 trillion in assets and $357 billion in stockholders’ equity as of June 30, 2025, while J.P. Morgan Asset Management manages approximately $3.8 trillion in assets. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with nine analysts recently revising their earnings expectations upward for the upcoming period. Discover more insights and 10+ additional ProTips with an InvestingPro subscription.

In other recent news, JPMorgan Chase reported strong financial results for the second quarter of 2025, exceeding analysts’ expectations with an earnings per share of $4.96 against a forecast of $4.48. The company’s revenue reached $44.9 billion, surpassing the anticipated $43.86 billion, despite a 10% year-over-year decline. Both Keefe, Bruyette & Woods and TD Cowen have raised their price targets for JPMorgan, citing strong returns and robust fee income growth, respectively. Keefe, Bruyette & Woods increased their earnings estimates for JPMorgan by 6% for 2025 and 3% for 2026 due to stronger revenue projections. Meanwhile, TD Cowen highlighted JPMorgan’s healthy capital levels and its attractive stock position despite trading at a premium compared to peers. Additionally, JPMorgan Chase declared dividends on eight series of its preferred stock, although specific amounts and payment dates were not disclosed. The bank also raised its net interest income outlook for fiscal year 2025 by $1 billion while increasing its expense guidance by $0.5 billion.

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