Self-Employed Retirement Maximum Contribution Calculator United States

What the self-employed retirement calculator does

The calculator estimates the most you can put into a SEP-IRA, a Solo 401(k) or a SIMPLE IRA for the year. It follows the sequence the IRS uses, starting from your net self-employment income and ending at a plan-specific ceiling. Enter your net self-employment income (your business profit for the year), the plan type, and whether you are 50 or older.

Freelancers, sole proprietors and single-member business owners have no employer plan deducting a percentage of each paycheck, so they handle both the employee and the employer side of a contribution. That dual role is why these plans can shelter far more than a standard IRA.

How the contribution base is built

You cannot simply multiply your profit by the plan percentage. The contribution base is adjusted net earnings, reached in two steps.

First, the calculator applies the one-half self-employment-tax deduction. You pay both the employee and employer share of Social Security and Medicare on your earnings, and the tax code lets you deduct half of that tax before calculating your contribution, which lowers the base below your profit.

Second, the employer percentage applies to earnings net of the contribution itself. That is why a plan described as "25% of compensation" works out to roughly 20% of adjusted net earnings for a self-employed person. The calculator does this conversion for you.

SEP-IRA

A SEP-IRA is funded entirely by an employer contribution. The calculator takes your adjusted net earnings, caps them at the annual compensation limit, applies the effective employer rate, and caps the result at the overall annual limit for defined-contribution plans.

SEP-IRAs are simple: little paperwork, no annual filing at low asset levels, and a contribution you can decide on up to your filing deadline. There is no employee salary-deferral, though, so at moderate incomes a SEP-IRA usually allows less than a Solo 401(k).

Solo 401(k)

A Solo 401(k), sometimes called an individual 401(k), lets you contribute in both roles. As the employee, you can make an elective deferral up to the annual deferral limit. As the employer, you can make the same profit-sharing contribution a SEP-IRA would allow. Added together and capped at the overall annual limit, this often makes the Solo 401(k) the most generous option, especially for solid but not very high incomes.

At age 50 or older, a catch-up deferral raises both your personal deferral and the overall ceiling; select the age-50 option to include it.

SIMPLE IRA

A SIMPLE IRA allows an employee deferral up to its own limit plus an employer contribution, which for a self-employed person is typically a match expressed as a percentage of net earnings. It needs less administration than a Solo 401(k) but has lower deferral limits, so it tends to suit smaller or side businesses more than a main high-earning practice.

How the calculation works

• It converts net self-employment income into adjusted net earnings using the one-half self-employment-tax deduction.
• It caps those earnings at the annual compensation limit for the employer piece.
• It applies the effective employer rate to reach the employer contribution.
• For a Solo 401(k) or SIMPLE IRA, it adds the employee deferral and any catch-up.
• It caps the total at the overall annual defined-contribution limit.

The rates, limits and thresholds are stored as parameters and updated when the IRS and SSA publish new annual figures.

If your income is uneven through the year, use your expected annual profit, not a single strong month scaled up, because the limits apply to the full year. If you also have a job with its own workplace plan, the employee deferral limit is shared across all your 401(k)-type plans, so coordinate the two to stay under the personal cap.

Reading your result

The output shows the maximum contribution split into the employee deferral and the employer contribution, plus your adjusted net earnings and the share of your net income the contribution represents. The split shows how much comes from each side, which helps when comparing plans.

Plan eligibility, deadlines and other retirement accounts can affect what you can actually contribute, so treat the figure as a planning estimate. The limits are indexed, so recalculate when your income changes or a new tax year begins, ideally before your filing deadline.

This is general information only and not financial or tax advice.

About This Self Employed Retirement Contribution Calculator

Use this self employed retirement contribution calculator to get an instant, accurate estimate. The figures follow official IRS guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.