Solo 401k & SEP-IRA Calculator
Enter your net self-employment income to see your maximum contribution limits and how much each retirement account saves you in taxes — side by side.
Gross income minus business expenses
$
⚠️ Estimates only. Tax rates updated for 2026. Consult a CPA for advice specific to your situation.
2026 Employee Limit$23,500
2026 Total Limit$70,000
SEP-IRA Limit$70,000
SEP-IRA
Max Contribution$25,761
Tax Savings$8,063
Take-Home After$42,947
Setup ComplexitySimple
Solo 401(k)
Employee Contribution$23,500
Employer Contribution$25,761
Total Contribution$49,261
Tax Savings$15,419
Take-Home After$26,803
Setup ComplexityModerate
Extra savings with Solo 401k vs SEP-IRA
$7,356
Solo 401k lets you contribute $23,500 more
Net SE compensation (the base for employer contributions): $103,045. This equals your net profit × 92.35% minus half your SE tax.
Which is better? Solo 401k wins if your income is above ~$50k — the employee contribution portion lets you shelter significantly more. SEP-IRA is simpler to open and maintain.
Baseline tax without contributions: $59,355 (49.5% effective rate).