2026 Limits

Retirement Plan Comparison

Choosing the right retirement plan can save you tens of thousands in taxes every year. Compare the Solo 401(k), SEP-IRA, and SIMPLE IRA side-by-side to see which lets you contribute the most.

Your Business & Income

Tell us about your situation and we’ll calculate your maximum contribution for each plan.

Important: If you have employees who meet your plan’s eligibility requirements, you are generally required to offer the same plan and contribution formula to them. The Solo 401(k) is only available to businesses with no employees other than a spouse. SEP-IRAs require contributions at the same percentage for all eligible employees. SIMPLE IRAs require the employer match for all participants. This can significantly affect the total cost of each plan.
$150,000 Net profit (Schedule C)
$10K$125K$250K$375K$500K
Catch-up contributions are available at age 50+ and are higher for ages 60–63 under SECURE 2.0.
Used to estimate tax savings from pre-tax contributions.

Three Options, One Goal

401k

Solo 401(k)

The most flexible option. Contribute as both employee (up to $24,500) and employer (25% of compensation). Offers a Roth option. Highest potential contribution for most owners.

SEP

SEP-IRA

Simple to set up and maintain. Employer-only contributions up to 25% of compensation (max $72,000). No employee deferral or catch-up. Great for high earners who want simplicity.

SIM

SIMPLE IRA

Designed for businesses with employees. Lower contribution limits but includes an employer match of up to 3%. Good for owners who want to offer a plan to their team.

Setup & Administration

Higher contributions aren’t always worth it if the ongoing paperwork buries you. Here’s how each plan stacks up on the complexity scale.

Easiest SEP-IRA

The simplest plan to establish and maintain. Fill out a two-page IRS Form 5305-SEP and you’re done — no plan document to draft, no annual IRS filings, and no ERISA requirements.

Can be established as late as your tax filing deadline (including extensions). No Form 5500. No annual employee notices. Contributions are discretionary year to year.

Moderate SIMPLE IRA

Slightly more involved than a SEP, but still avoids ERISA and Form 5500 filing. Requires a plan document (IRS Form 5304 or 5305-SIMPLE) and an annual notification to employees during the 60-day election period.

Must be established by October 1 of the plan year. Employer contributions are mandatory every year (either a 3% match or 2% nonelective). Employee deferrals must be deposited within 30 days of payroll.

Most Involved Solo 401(k)

The most powerful plan, but with more moving parts. Requires a formal plan document and must be established by December 31 of the tax year. Once plan assets exceed $250,000, you’ll need to file Form 5500-EZ annually with the IRS.

Subject to ERISA if covering employees beyond a spouse. Roth and loan provisions add flexibility but also record-keeping. Many providers now handle compliance for a modest fee, making it far more accessible than it used to be.

Important: This tool provides estimates for the 2026 tax year for educational purposes only. Self-employed contribution limits use net earnings after the deductible half of SE tax, which effectively reduces the employer contribution percentage from 25% to approximately 20% of net profit. S-Corp contributions are based on W-2 salary. The Solo 401(k) total annual addition limit is $72,000 for 2026 ($80,000 with age 50+ catch-up, $83,250 for ages 60–63). SIMPLE IRA employer match assumes 3% of compensation. Actual plan design, deadlines, and eligibility rules vary. SECURE 2.0 catch-up rules for ages 60–63 apply through 2027. Consult with a tax professional before establishing or contributing to any retirement plan.

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