Self-Employed Retirement Calculator
See your maximum 2026 SEP-IRA and Solo 401(k) contributions from one number — your net self-employment income — and which plan lets you save more.
Business profit — income minus expenses, before retirement contributions.
Drives the catch-up contribution (50+ adds more; ages 60–63 add the most).
Calculate your maximum SEP-IRA and Solo 401(k) contributions
This free self-employed retirement calculator shows the most you can contribute to a SEP-IRA or a Solo 401(k) for the 2026 tax year — from a single number, your net self-employment income. Self-employed retirement plans allow far larger contributions than a regular IRA, and every dollar you contribute also lowers your taxable income, so the stakes for getting the figure right are high.
Enter your net self-employment income and your age, and the calculator returns the maximum contribution for each plan, with the SEP-IRA and Solo 401(k) shown side by side. It's built for freelancers, independent contractors, consultants, and single-member LLC owners who want to cut their tax bill while building retirement savings.
2026 SEP-IRA and Solo 401(k) contribution limits
For 2026, total contributions to a SEP-IRA or a Solo 401(k) are capped at $72,000. A Solo 401(k) splits that ceiling into two parts: an employee salary deferral of up to $24,500, plus an employer profit-sharing contribution of roughly 20% of your net self-employment earnings.
Catch-up contributions add more for older savers: an extra $8,000 for ages 50–59 and 64+, and an enhanced $11,250 for ages 60–63 under the SECURE 2.0 rules. SEP-IRAs do not allow catch-up contributions.
Why a Solo 401(k) usually beats a SEP-IRA
A SEP-IRA contribution is only the employer piece — about 20% of net earnings. A Solo 401(k) adds the employee deferral on top of that same 20%, so at low and moderate incomes you can contribute dramatically more — sometimes the difference between saving $18,000 and saving $42,000.
At high incomes the two plans converge on the same $72,000 ceiling. A SEP-IRA is simpler to open and administer; a Solo 401(k) wins on contribution room at most income levels and is the only one of the two that allows catch-up contributions.
What 'net self-employment earnings' means
Contributions are not calculated on your gross business profit. They are based on net earnings from self-employment — your business profit minus the deductible half of your self-employment tax. That's why this calculator subtracts half of SE tax before applying the roughly 20% contribution rate. The 20% itself comes from the 25%-of-compensation limit: applied to a self-employed person's own reduced earnings, 25% works out to an effective 20%.
Frequently asked questions
How much can a self-employed person contribute to retirement in 2026?+
Up to $72,000 total in a SEP-IRA or Solo 401(k), plus catch-up contributions ($8,000 at ages 50–59 and 64+, or $11,250 at ages 60–63) in a Solo 401(k).
SEP-IRA or Solo 401(k) — which should I choose?+
A Solo 401(k) almost always lets you contribute more, especially at low-to-mid incomes, and allows catch-up contributions. A SEP-IRA is simpler to open and administer. This calculator shows both maximums so you can compare.
Why is the contribution rate about 20% and not 25%?+
The 25% limit applies to an employee's compensation. For a self-employed person, applying 25% to your own (reduced) net earnings works out to an effective rate of 20% — that's the figure this tool uses.
Do retirement contributions lower my taxes?+
Yes. Contributions to a traditional SEP-IRA or Solo 401(k) are deductible, reducing your taxable income for the year — one of the most effective tax-planning moves available to the self-employed.
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