Solo 401(k) Calculator for the Self-Employed: 2026 Maximum Contribution

“IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.”

“The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3), which includes elective deferrals made to the Thrift Savings Plan, is increased from $23,500 to $24,500.”

“The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2026 from $70,000 to $72,000.”

“The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000, up from $7,500 for 2025.”

“Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.”

“The annual additions paid to a participant’s account cannot exceed the lesser of: 100% of the participant's compensation, or $72,000 in 2026 ($80,000 including catch-up contributions or up to $83,250 for those age 60 to 63), subject to cost-of-living adjustments. However, an employer’s deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to eligible employees participating in the plan (see Employer Deduction in Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans).”

“The annual compensation limitation under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $350,000 to $360,000.”

“The amount of your compensation that can be taken into account when determining employer and employee contributions is limited to $360,000 for 2026, subject to cost-of-living adjustments.”

“The business owner wears two hats in a 401(k) plan: employee and employer.”

“When figuring the contribution, compensation is your “earned income,” which is defined as net earnings from self-employment after deducting both: one-half of your self-employment tax, and contributions for yourself.”

“For a self-employed individual, “compensation” means the earned income, discussed later, of that individual.”

“Earned income is net earnings from self-employment, discussed later, from a business in which your services materially helped to produce the income.”

“Compensation is your net earnings from self-employment, defined in chapter 1. This definition takes into account both the following items. The deduction for the deductible part of your self-employment tax. The deduction for contributions on your behalf to the plan.”

“The deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) can't be more than 25% of the compensation paid (or accrued) during the year to your eligible employees participating in the plan. If you are self-employed, you must reduce this limit in figuring the deduction for contributions you make for your own account.”

“Elective deferrals (discussed later) aren't subject to the limit.”

“You are a sole proprietor with no employees. If your plan's contribution rate is 10% of a participant's compensation, your rate is 0.090909.”

“The deduction for annual employer contributions (other than elective deferrals) to a SEP plan, a profit-sharing plan, or a money purchase pension plan can't be more than 20% of your net earnings (figured without deducting contributions for yourself) from the business that has the plan.”

“You are a sole proprietor with no employees. The terms of your plan provide that you contribute 8½% (0.085) of your compensation to your plan. Your net profit from Schedule C (Form 1040), line 31, is $200,000. You have no elective deferrals or catch-up contributions. Your self-employment tax deduction on line 15 of Schedule 1 (Form 1040) is $13,596.”

“Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment.”

“This rate consists of 12.4% for Social Security and 2.9% for Medicare taxes.”

“The law sets a maximum amount of net earnings subject to the Social Security tax. This amount changes annually. All of your net earnings are subject to the Medicare tax.”

“The social security wage base limit is $184,500.”

“For 2025, the maximum amount of self-employment income subject to social security tax is $176,100.”

“When figuring your adjusted gross income on Form 1040, Form 1040-SR, or Form 1040-NR, you can deduct one-half of the self-employment tax.”

“A business owner who is also employed by a second company and participating in its 401(k) plan should bear in mind that his limits on elective deferrals are by person, not by plan.”

“Generally, you aggregate all elective deferrals you made to all plans in which you participate to determine if you have exceeded these limits. If a plan participant’s elective deferrals are more than the annual limit, find out how you can correct this plan mistake.”

“Example 1: In 2020, Greg, 46, is employed by an employer with a 401(k) plan, and he also works as an independent contractor for an unrelated business and sets up a solo 401(k). Greg contributes the maximum amount to his employer’s 401(k) plan for 2020, $19,500. He would also like to contribute the maximum amount to his solo 401(k) plan. He is not able to make further elective deferrals to his solo 401(k) plan because he has already contributed his personal maximum, $19,500. He would also like to contribute the maximum amount to his solo 401(k) plan. Greg is not able to make further elective salary deferrals to his solo 401(k) plan because he has already contributed his personal maximum, $19,500, to his employer’s plan. However, he has enough earned income from his business to contribute the overall maximum for the year, $57,000. Greg can make a nonelective contribution of $57,000 to his solo 401(k) plan. This $57,000 limit is not reduced by the elective deferrals Greg made under his employer’s plan because the limit on annual additions applies to each plan separately.”

“Individuals who are age 50 or over at the end of the calendar year can make annual catch-up contributions.”

“If permitted by the 401(k) plan, participants age 50 or over at the end of the calendar year can also make catch-up contributions.”

“A participant can make catch-up contributions for a year up to the lesser of the following amounts: The catch-up contribution dollar limit, or The excess of the participant's compensation over the elective deferral contributions that are not catch-up contributions.”

“Elective deferrals are not treated as catch-up contributions until they exceed the limit of $24,500 in 2026 or the ADP test limit of section 401(k)(3) or the plan limit (if any).”

“Catch-up contributions are not taken into account in applying the limits of section 401(a)(30), 402(h), 403(b), 408, 415(c), or 457(b)(2) (determined without regard to section 457(b)(3)) to other contributions or benefits under an applicable employer plan or any other plan of the employer.”

“The catch-up contribution limit for a taxable year is generally the applicable dollar catch-up limit for such taxable year, as set forth in paragraph (c)(2) of this section. However, an elective deferral is not treated as a catch-up contribution to the extent that the elective deferral, when added to all other elective deferrals for the taxable year under any applicable employer plan of the employer, exceeds the participant's compensation (determined in accordance with section 415(c)(3)) for the taxable year.”

“Beginning in 2026, participants of plans with Roth features offering catch-up contributions must make catch-up contributions on a Roth basis if prior-year wages with the plan sponsor exceeded $150,000 (for 2026).”

“Specifically, under section 414(v)(7)(A), in the case of a catch-up eligible participant whose wages as defined in section 3121(a) (that is, wages for purposes of the Federal Insurance Contributions Act (FICA), codified at subtitle C, chapter 21 of the Code, or FICA wages) for the preceding calendar year from the employer sponsoring the plan exceeded $145,000, section 414(v)(1) applies only if any catch-up contributions made by the participant are designated Roth contributions (as defined in section 402A(c)(1)).”

“For a calendar year beginning after December 31, 2024, the Roth catch-up wage threshold in paragraph (a)(2) of this section is the initial amount ($145,000), increased for changes in the cost of living.”

“The Roth catch-up wage threshold for 2025, which under section 414(v)(7)(A) is used to determine whether an individual’s catch-up contributions to an applicable employer plan (other than a plan described in section 408(k) or (p)) for 2026 must be designated as Roth contributions, is increased from $145,000 to $150,000.”

“Although Participant A is a partner with the accounting firm for the last two months of 2026 and for all of 2027 (and thus has self-employment income rather than FICA wages for that period), Participant A had more than $155,000 in FICA wages from the accounting firm for 2026. Thus, Participant A is subject to section 414(v)(7)(A) for 2027, and if Participant A makes elective deferrals in excess of an applicable limit for 2027 under a plan sponsored by the accounting firm, those elective deferrals must be designated Roth contributions.”

“The provisions in the final regulations relating to the Roth catch-up requirement generally apply to contributions in taxable years beginning after Dec. 31, 2026. However, the final regulations provide a later applicability date for certain governmental plans and plans maintained under a collective bargaining agreement. The final regulations also permit plans to implement the Roth catch-up requirement for taxable years beginning before 2027 using a reasonable, good faith interpretation of statutory provisions. The final regulations do not extend or modify the administrative transition period provided under Notice 2023-62, which generally ends on Dec. 31, 2025.”

“It's a traditional 401(k) plan covering a business owner with no employees, or that person and his or her spouse.”

“The no-testing advantage vanishes if the employer hires employees.”

“A one-participant 401(k) plan is generally required to file an annual report on Form 5500-EZ if it has $250,000 or more in assets at the end of the year. A one-participant plan with fewer assets may be exempt from the annual filing requirement.”

“The table and the worksheets in chapter 5 apply only to self-employed individuals who have only one defined contribution plan, such as a profit-sharing plan.”