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 2026 contribution limits
For 2026, total contributions to a SEP-IRA or Solo 401(k) are capped at $72,000. A Solo 401(k) splits that into an employee salary deferral (up to $24,500) and an employer profit-sharing contribution (about 20% of net self-employment earnings). Catch-up contributions add $8,000 for ages 50–59 and 64+, and an enhanced $11,250 for ages 60–63 under SECURE 2.0.
Why a Solo 401(k) usually wins at lower incomes
A SEP-IRA contribution is only the ~20% employer piece. A Solo 401(k) adds the employee deferral on top, so at modest incomes you can contribute far more — sometimes the difference between saving $18,000 and saving $42,000. At high incomes both plans converge on the $72,000 ceiling.
What 'net self-employment earnings' means
Contributions aren't calculated on your gross profit. They're based on net earnings from self-employment — your business profit minus the deductible half of your self-employment tax. That's why the calculator subtracts half of SE tax before applying the ~20% rate.
Frequently asked
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 50–59 and 64+, or $11,250 at ages 60–63) for 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 has fewer administrative steps. 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.
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