Solo 401(k) Calculator 2026

Calculate your maximum Solo 401(k) contributions as a self-employed business owner. See your employee deferral, employer profit-sharing, and total tax-sheltered savings for 2026.

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Your net profit after expenses from Schedule C or business K-1
Catch-up contributions (+$8K age 50+, +$11,250 age 60-63) are auto-included based on your age
📈 Your Solo 401(k) Contribution Summary
Employee Deferral $0
Employer Contribution $0
Total Max Contribution $0
Tax Savings Estimate (32%) $0
Remaining Room $0
ItemAmount
Net Profit from Self-Employment$0
Employee Salary Deferral (max $24,500)$0
Employer Profit-Sharing (25% of adjusted comp)$0
Total Maximum Contribution$0
Remaining Contribution Room$0
Estimated Tax Savings at 32% Rate$0

💸 How Solo 401(k) Contributions Work

As a self-employed individual, you wear two hats: employee and employer. As an employee, you can defer up to $24,500 of your net profit into the plan. As an employer, you can contribute up to 25% of your adjusted net compensation as a profit-sharing contribution.

The total of both contributions cannot exceed $72,000 for 2026 (higher with catch-up). Every dollar you contribute reduces your taxable income, saving you federal and state income tax at your marginal rate.

• Contribute early — Employee deferrals must be elected by Dec 31; employer contributions can be made until tax day
• Maximize catch-up — If you're 50+, the extra $8,000 (or $11,250 if 60-63) significantly boosts your savings
• Consider Roth — Solo 401(k) plans often allow Roth deferrals for tax-free growth
• Watch the $250K threshold — File Form 5500-EZ if plan assets exceed $250,000
Tax Disclaimer: This calculator provides estimates for informational purposes only. Actual Solo 401(k) contribution limits depend on your net self-employment income, age, and plan adoption date. Consult a qualified tax professional or CPA for advice specific to your situation.

Frequently Asked Questions

Answers to common questions about Solo 401(k) plans for self-employed taxpayers

A Solo 401(k), also called a Self-Employed 401(k) or Individual 401(k), is a retirement plan designed for self-employed individuals and small business owners with no full-time employees. You contribute as both employee (salary deferral) and employer (profit-sharing). For 2026, you can defer up to $24,500 as an employee and receive up to $72,000 total including employer contributions. The money grows tax-deferred until withdrawal. Unlike a SEP IRA, a Solo 401(k) also offers a Roth option and allows loan provisions.
For 2026, the employee salary deferral limit is $24,500. The total contribution limit (employee + employer) is $72,000. If you are age 50 or older, you can make an additional catch-up contribution of $8,000. If you are age 60-63, the catch-up amount increases to $11,250 under SECURE 2.0. Employer profit-sharing contributions are limited to 25% of your net self-employment income (after the 50% SE tax deduction, calculated on 92.35% of net profit).
In 2026, the catch-up contribution limit for Solo 401(k) plans is $8,000 for participants aged 50 and over. SECURE 2.0 introduced a higher catch-up of $11,250 for participants aged 60-63 (ages 60 through 63). You can only make catch-up contributions if you are already deferring at least the standard employee deferral limit or your compensation is less than the limit. The catch-up is in addition to the $24,500 employee deferral limit, effectively raising total employee deferral to $32,500 (or $35,750 if 60-63).
To open a Solo 401(k) for a given tax year, the plan must be established by December 31 of that year. Employee salary deferral contributions must be made by December 31 as well (you must have a salary deferral election in place before year-end). However, employer profit-sharing contributions can be made up until the tax filing deadline including extensions, typically April 15, 2027 for the 2026 tax year. If you extend your tax return, you have until October 15, 2027 for employer contributions. Setting up early maximizes your contribution flexibility.
Yes, many Solo 401(k) plans offer a Roth option. Roth contributions are made with after-tax dollars but grow tax-free and withdrawals in retirement are tax-free (qualified distributions). The combined total of pre-tax and Roth employee deferrals cannot exceed the $24,500 limit ($32,500 with catch-up). Employer profit-sharing contributions are always pre-tax. A Roth Solo 401(k) is ideal if you expect to be in a higher tax bracket in retirement, as the tax-free withdrawals can save you significantly over time.
A Solo 401(k) generally allows higher total contributions than a SEP IRA when you want to make employee deferrals. With a SEP IRA, only employer contributions are allowed (up to 25% of compensation, max $72,000 for 2026). A Solo 401(k) lets you contribute both as employee (up to $24,500) and employer, reaching the $72,000 cap faster and potentially exceeding the SEP's effective contribution rate. Solo 401(k) also offers Roth options, loan provisions, and higher catch-up contributions. SEP IRAs are simpler with less paperwork and no Form 5500-EZ filing unless assets exceed $250K.
The employer profit-sharing contribution for a Solo 401(k) is calculated as 25% of your net self-employment compensation. This compensation is determined by taking your net Schedule C profit, multiplying by 92.35% (the SE tax base), then subtracting 50% of your self-employment tax. The resulting amount is your "compensation" for retirement plan purposes. The employer contribution of 25% of this figure cannot exceed the remaining room after your employee deferral within the total $72,000 limit. You can choose any percentage up to 25% each year.
If your Solo 401(k) plan assets exceed $250,000 at the end of the plan year, you must file Form 5500-EZ with the IRS by July 31 of the following year. For the 2026 plan year, the deadline is July 31, 2027. Failure to file can result in IRS penalties of up to $250 per day, up to a maximum of $150,000. If your plan assets are under $250,000, no Form 5500-EZ is required. This form is relatively simple and can be filed electronically through the DOL's EFAST2 system at no cost.

What Is a Solo 401(k) Plan?

A Solo 401(k), also known as an Individual 401(k) or Self-Employed 401(k), is a powerful retirement savings vehicle designed specifically for self-employed individuals, sole proprietors, and single-member LLCs with no common-law employees (or only a spouse). Unlike a traditional 401(k), the Solo 401(k) allows you to contribute as both the employee (via salary deferrals) and the employer (via profit-sharing contributions), making it one of the most tax-efficient ways for business owners to save for retirement. For 2026, contribution limits are $24,500 for employee deferrals and up to $72,000 total (including employer profit-sharing), with catch-up options for those aged 50 and older.

Contribution Types: Employee Deferral vs Employer Profit-Sharing

The Solo 401(k) features two distinct contribution types. The employee salary deferral lets you contribute up to $24,500 of your net self-employment income (or 70% of net profit, whichever is less), reducing your taxable income dollar-for-dollar. The employer profit-sharing contribution allows you to contribute up to 25% of your adjusted net compensation (your Schedule C profit minus the deductible portion of self-employment tax, calculated on 92.35% of net profit). Together, these contributions are capped at $72,000 for 2026. If you are 50 or older, catch-up contributions add $8,000 (or $11,250 if you are between 60 and 63), bringing potential totals to $80,000 or $83,250 respectively.

Benefits of a Solo 401(k) for Self-Employed Business Owners

A Solo 401(k) offers several advantages over other retirement plans. First, the total contribution limit is significantly higher than a SEP IRA when making employee deferrals, especially for sole proprietors with moderate to high income. Second, Roth contributions are available in most plans, allowing for tax-free growth and withdrawals in retirement. Third, you can borrow from your Solo 401(k) via plan loans. Fourth, the plan is easy to set up with most major brokerages (Vanguard, Fidelity, Schwab) at no annual cost. Fifth, unlike SEP IRAs, Solo 401(k) contributions do not interfere with backdoor Roth IRA contributions since the plan is not subject to the pro-rata rule for IRAs.

Strategies to Maximize Your Solo 401(k) Contributions in 2026

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