Self-Employed Retirement Contribution Calculator

Whether you're self-employed as a sole proprietor, freelancer, or small business owner, you're responsible for your own retirement plan. Depending on your net profit and the plan type you choose, annual contributions can reach levels that rival or exceed what many salaried employees receive through employer-sponsored plans. The plans available to self-employed individuals include:

• Solo 401(k)
• SEP-IRA
• SIMPLE IRA
  

Use this calculator to estimate your maximum contribution across all three plan types, then explore the comparison section below to understand which structure may be most suitable for your situation.

How to Use This Calculator*

1. Input your business type.
2. For sole proprietors, input your net profit which is located on your Schedule C or Schedule K-1.
3. For those organized as a corporation, input W-2 wages, paid to yourself.
   

Having your most recent tax return nearby will help you input the correct figures.

The calculator will output your estimated maximum contribution for all three plan types — Solo 401(k), SEP-IRA, SIMPLE IRA — side by side. Seeing those numbers together makes it easy to compare your potential savings across options before committing to a plan.

Comparing Self-Employed Retirement Plan Options

When choosing a plan, it's important to consider more than just the contribution ceiling. Finding a structure that fits how your business actually works is often just as vital. The right choice of plan may depend on how much you want to save, whether you have or plan to hire employees, and how much administrative complexity you're comfortable managing each year.

Solo 401(k)

The Solo 401(k), sometimes called an Individual 401(k) or Self-Employed 401(k), is available to self-employed individuals with no full-time employees other than a spouse. It offers the highest contribution potential at lower income levels because it allows both an employee deferral and an employer contribution.

As the employee, you can defer up to $23,500 in 2026. As the employer, you can contribute an additional amount based on your net earnings. Combined, total contributions can reach up to $70,000 in 2026. If you're between ages 60 and 63, an enhanced catch-up contribution under SECURE 2.0 may allow you to save even more.

SEP-IRA

The SEP-IRA is one of the simpler plans to set up and maintain. Contributions are calculated as a percentage of your net self-employment income — up to 25%, with a maximum of $70,000 in 2026. There is no employee deferral component, and you are not required to contribute every year. That built-in flexibility makes the SEP-IRA well suited for businesses with variable income, where a lower-profit year shouldn't create a fixed contribution obligation.

SIMPLE IRA

The SIMPLE IRA is designed for small businesses with up to 25 employees. It allows employee salary deferrals of up to $16,500 in 2026 and requires the employer to make either a matching or non-elective contribution. If you're a business owner who wants to offer a retirement benefit to staff, the SIMPLE IRA is worth considering. Keep in mind that the employer contribution requirement adds a layer of cost and commitment that may not fit every business stage.

2026 Plan Comparison

If you're weighing these options alongside broader tax and business planning goals, connecting with an advisor before making a final selection can help you move forward with confidence.