Self-Employed Retirement Calculator

For most self-employed people with no employees, the Solo 401(k) wins because it combines an employee deferral (up to $24,500 in 2026) with an employer profit-sharing contribution, so you can shelter far more than a SEP IRA at the same income. A SEP IRA is simpler to run and a good choice if you want minimal paperwork. A SIMPLE IRA fits a small team where employees also contribute, and a Traditional IRA works as a supplement. This calculator recommends the plan that lets you contribute the most given your income and whether you have employees.

It depends on the plan and your income. A Solo 401(k) allows up to $72,000 in combined employee and employer contributions (the §415(c) limit), plus a catch-up of $8,000 at 50-59 or $11,250 at 60-63 on top. A SEP IRA allows up to 25% of compensation, also capped at $72,000. A SIMPLE IRA allows $17,000 of salary deferral plus an employer match. A Traditional IRA allows $7,500, or $8,600 if you're 50 or older.

At the same income, a Solo 401(k) almost always allows a larger contribution because it adds an employee deferral on top of the same profit-sharing percentage a SEP uses. The SEP's advantage is simplicity: no annual filing and easy to open. The trade-off is that a Solo 401(k) requires a Form 5500-EZ once plan assets pass $250,000, and it offers a Roth option a SEP does not. If you want to maximize savings, the Solo 401(k) usually wins; if you want the least administration, the SEP is hard to beat. Run both through the Solo 401(k) and SEP IRA calculators to compare exact numbers.

For a sole proprietor or single-member LLC, it's your net profit from Schedule C, which is revenue minus business expenses. Your contribution is based on that figure minus half of your self-employment tax, which is why the effective profit-sharing rate works out to about 20% rather than 25%. For an S-corp or C-corp owner, the relevant number is your W-2 wages, and the profit-sharing rate is a straight 25% of those wages.

Not if you have non-spouse employees who work enough hours to be eligible. A Solo 401(k) is designed for an owner and an optional spouse only. Once you hire eligible employees, you'd move to a SEP IRA (which requires contributing the same percentage for every eligible employee) or a SIMPLE IRA (which lets employees contribute their own money with a smaller employer match). Check the employees box in the calculator to see your options without the Solo 401(k).

Yes, increasingly. A Solo 401(k) can offer a Roth bucket for the employee deferral, giving you tax-free growth, and SECURE 2.0 also allows Roth treatment for SIMPLE IRA contributions and even SEP and SIMPLE employer contributions. A standard Traditional IRA is pre-tax, but you can use a separate Roth IRA if your income qualifies. The Roth option is one reason many self-employed savers favor the Solo 401(k).

A single-plan calculator tells you the maximum you can put into that one plan. This tool compares all four plans at once, projects what each would be worth at your retirement age, and recommends the best fit. Once you've picked a direction, use the dedicated Solo 401(k), SEP IRA, or SIMPLE IRA calculator for a deeper look.