Self-Employed Retirement Account Calculator
Compare SEP-IRA, Solo 401(k), and SIMPLE IRA contribution limits for 2026. Enter your net self-employment income and age to see your max deduction and estimated tax savings side-by-side.
Frequently Asked Questions
What is the maximum SEP-IRA contribution for self-employed in 2026?
For 2026, self-employed individuals can contribute up to 25% of net self-employment profit to a SEP-IRA, with a maximum of $70,000. Net profit is calculated after subtracting the deductible portion of self-employment tax (half of SE tax). SEP-IRAs have no catch-up contributions for those age 50 and older.
How does a Solo 401(k) work for self-employed people?
A Solo 401(k) allows self-employed individuals to make both employee and employer contributions. For 2026, the employee elective deferral limit is $23,500 (plus $7,500 catch-up for those age 50+). The employer profit-sharing contribution is 25% of net self-employment income. The combined limit is $70,000 (plus catch-up), making it the highest-limit option for most self-employed workers.
What is the SIMPLE IRA contribution limit for 2026?
The SIMPLE IRA employee deferral limit for 2026 is $16,500, plus a $3,500 catch-up contribution for those age 50 or older. Unlike SEP-IRAs and Solo 401(k)s, SIMPLE IRA contributions are employee deferrals from compensation. SIMPLE IRAs also have a two-year rule restricting rollovers in the first two years.
Which retirement account is best for self-employed individuals?
For most self-employed individuals with higher income, the Solo 401(k) typically allows the largest tax-deductible contribution by combining employee deferrals with employer profit-sharing. At lower income levels, the SIMPLE IRA or SEP-IRA may be competitive. Solo 401(k)s also offer a Roth option. Note: Solo 401(k)s are only available to business owners with no full-time employees other than a spouse.
How is net self-employment income calculated for retirement contributions?
Start with your net SE income (gross revenue minus business expenses). Then subtract the deductible half of self-employment tax. SE tax equals net SE income × 0.9235 × 15.3%. Half of this SE tax is deductible, reducing the net profit used in contribution calculations.
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