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SEP IRA vs Solo 401(k) Calculator

A SEP IRA allows 25% of net self-employment income; a Solo 401(k) adds an employee deferral on top of that same employer contribution: see which allows more.

Quick answer: A SEP IRA allows 25% of net self-employment income; a Solo 401(k) adds an employee deferral on top of that same employer contribution: see which allows more. Enter Eligible Plan Compensation (Estimate) and Employer Contribution Rate on Eligible Compensation to personalize the estimate. It returns Solo 401(k) Max Contribution, 2026 Overall Defined-Contribution Limit, and 2026 Solo 401(k) Employee Deferral Limit so you can compare the impact before choosing a next step. Use it to compare payment, APR, total cost, credit impact, and lender or card tradeoffs.

SWReviewed by SwitchWize Research Desk · Last reviewed July 20, 2026
Solo 401(k) Max Contribution
$44,500
Solo 401(k) Max Contribution
$44,500
2026 Overall Defined-Contribution Limit
$72,000
2026 Solo 401(k) Employee Deferral Limit
$24,500
SEP IRA Max Contribution
$20,000
Solo 401(k) Advantage Over SEP IRA
$24,500
Diagnostic

A SEP IRA maxes out at about $20,000 here, versus $44,500 for a Solo 401(k).

That's a $24,500 advantage for the Solo 401(k) at this income level.

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What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    A SEP IRA allows 25% of net self-employment income; a Solo 401(k) adds an employee deferral on top of that same employer contribution: see which allows more.

  2. 2

    Pressure-test one alternate scenario before deciding

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

Compare Solo 401(k) providers

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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SEP IRA vs Solo 401k: Which Plan Saves You More in?SEP IRA vs Solo 401k compared side by side. See 2026 contribution limits, Roth options, tax savings by income level, and which plan fits your situation.
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Frequently Asked Questions

Everything you need to know.

What does an example SEP IRA vs Solo 401(k) Calculator calculation look like?
Using this calculator's own default assumptions, a eligible plan compensation (estimate) of $100,000 produces an estimated solo 401(k) max contribution of $44,500 and 2026 overall defined-contribution limit of $72,000. Enter your own numbers above to see how it changes for your situation.
What does the SEP IRA vs Solo 401(k) Calculator do?
A SEP IRA allows 25% of net self-employment income; a Solo 401(k) adds an employee deferral on top of that same employer contribution: see which allows more.
Is the SEP IRA vs Solo 401(k) Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the SEP IRA vs Solo 401(k) Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare solo 401(k) providers, or run Money Map to compare this loans & credit decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (ira) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

How to Use It

  1. 1Enter your eligible plan compensation (estimate)
  2. 2Enter your employer contribution rate on eligible compensation
  3. 3See your estimated 2026 overall defined-contribution limit, 2026 solo 401(k) employee deferral limit, sep ira max contribution, solo 401(k) max contribution, solo 401(k) advantage over sep ira
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