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Self-employed contractors can often save MORE for retirement than W-2 employees—with bigger tax deductions. This calculator compares your options and shows your maximum contribution limits.

tune Your Situation

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savings Retirement Projection

Projected Savings at Retirement

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20 years to retirement

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Monthly From Savings

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Total Monthly Income

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Target Nest Egg

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Years Savings Last

check_circle On Track!

Based on your current savings rate, you're projected to reach your retirement goals.

How to Use This Calculator

  1. Enter your net self-employment income
  2. See maximum contributions for each account type
  3. Compare tax savings between SEP IRA and Solo 401k
  4. Use the projection to see your retirement growth

SEP IRA vs Solo 401k for Contractors

Feature SEP IRA Solo 401k
2024 Max Contribution$69,000$69,000 + $7,500 catch-up
Contribution Limit25% of net SE income25% employer + $23,000 employee
Setup ComplexitySimple (1 form)More complex
Loan OptionNoYes (up to $50K)
Roth OptionNoYes
Best ForSimple needs, lower incomeMax savings, want Roth/loans

Quick Rule of Thumb

If your net self-employment income is under $150K and you want simplicity, go with a SEP IRA. If you want to maximize contributions or need loan access, choose a Solo 401k.