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).
The $24,500 employee deferral limit is shared across plans. Employer contributions are separate.
Calculate your maximum SEP-IRA and Solo 401(k) contributions
This calculator estimates 2026 SEP-IRA and one-participant 401(k) limits for a Schedule C owner with no employees. Traditional deductible contributions can lower taxable income, so the compensation and plan limits matter.
Enter net self-employment income, age, and elective deferrals made to another employer plan. The calculator reduces plan compensation by half of self-employment tax and applies the person-wide deferral limit.
2026 SEP-IRA and Solo 401(k) contribution limits
For 2026, regular defined-contribution additions are capped at $72,000. A Solo 401(k) combines an elective deferral of up to $24,500 across all 401(k) and 403(b) plans with an employer contribution of roughly 20% of reduced self-employment earnings. Eligible catch-up contributions can be added above the $72,000 regular limit.
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 regular contributions can converge on the same $72,000 ceiling. Eligible Solo 401(k) participants can still add catch-up contributions. A SEP-IRA is usually simpler to administer.
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) often allows more at low and moderate incomes because it combines an elective deferral with the employer contribution and can allow catch-ups. A SEP-IRA is usually simpler to administer.
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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