Why don't most Uber drivers use a Solo 401(k)?

Most are unaware of the plan or believe their irregular income prevents saving.

Does the Solo 401(k) affect Uber investors?

Yes, increased awareness could reduce driver turnover and improve loyalty, benefiting Uber.

Which companies are related to this topic?

Uber (UBER) and Charles Schwab (SCHW) are the related companies.

Uber Drivers Overlook IRS Solo 401(k) with $72,000 Limit

According to 24/7 Wall St., Uber (UBER) drivers and other independent contractors can contribute up to $72,000 per year to a Solo 401(k) plan, treating themselves as both employer and employee, yet most remain unaware of the option.

July 11, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

max contribution

$72,000

If you drive for Uber (NYSE:UBER), deliver for DoorDash, or shop for Instacart, you likely receive a 1099-NEC at year-end with no benefits. That is precisely why the IRS treats you as both employer and employee of your own one-person business, and why a Solo 401(k) allows you to save up to $72,000 annually.

Plan Details

The Solo 401(k) lets self-employed individuals contribute as an employee (up to $23,000 for 2026, plus $7,500 catch-up for those over 50) and as an employer (up to 25% of net self-employment income), for a combined maximum of $72,000.

Context

Despite this generous limit, the vast majority of Uber drivers and gig workers do not use the plan, either due to lack of awareness or the belief that irregular income prevents saving. Estimates suggest fewer than 5% of gig workers utilize retirement plans.

What This Means for Investors

For investors in Uber (UBER) and Charles Schwab (SCHW), greater awareness of the Solo 401(k) could improve driver financial stability, potentially reducing turnover and increasing platform loyalty. Brokerage firms like Schwab may also benefit from new account openings if they launch educational campaigns.

Frequently Asked Questions

Uber drivers can save up to $72,000 per year through a Solo 401(k) plan for 2026.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.