2026 Solo 401(k) limits at a glance
| Contribution type | 2026 limit |
|---|---|
| Employee deferral (under 50) | $23,500 |
| Catch-up contribution (50–59, 64+) | +$7,500 |
| Special catch-up (60–63) | +$11,250 |
| Total annual limit (under 50) | $70,000 |
| Total annual limit (50–59, 64+) | $77,500 |
| Total annual limit (60–63) | $81,250 |
| Compensation limit | $350,000 |
Employee deferral: $23,500
The employee deferral (also called a salary deferral) is the amount you contribute as the 'employee' of your own business. In 2026, the limit is $23,500 — the same as the 401(k) employee deferral limit for traditional workplace 401(k) plans.
Important: This limit is per person, not per plan. If you participate in multiple 401(k) plans (e.g., a Solo 401(k) for your freelance work and your employer's 401(k) at your day job), the combined employee deferrals across all plans cannot exceed $23,500.
Employee deferrals can be traditional (pre-tax) or Roth (after-tax) — most major Solo 401(k) providers support both options.
Employer contribution: up to 25% of compensation
As the 'employer' of your own business, you can contribute up to 25% of net self-employment compensation — but the calculation differs by business structure:
Sole proprietor/single-member LLC: Net self-employment income is reduced by half the self-employment tax first. The formula is: net profit × 0.9235 × 20% (which equals ~18.59% of gross net profit). This is because sole proprietors use 'net compensation' which accounts for the SE tax deduction.
S-Corp owner: 25% of your W-2 salary from the S-Corp (no SE tax adjustment needed, since S-Corp pays W-2 wages). This is why an S-Corp often simplifies the calculation.
The employer contribution is completely separate from the employee deferral and is not affected by what you contribute to your employer's 401(k) at a day job.
SECURE 2.0 catch-up rule for ages 60–63
The SECURE 2.0 Act introduced an enhanced catch-up contribution for workers aged 60, 61, 62, or 63. Starting in 2025:
- Ages 50–59 and 64+: Standard $7,500 catch-up = $31,000 employee deferral - Ages 60–63: Enhanced catch-up of $11,250 = $34,750 employee deferral, total cap $81,250
This is a significant change for self-employed workers in peak earning years who are approaching retirement and want to accelerate savings.
How the limits work together: examples
Example 1 — Freelancer, $80,000 net income, age 42: - Employee deferral: $23,500 - Employer contribution: $80,000 × 0.9235 × 20% = $14,776 - Total: $38,276
Example 2 — Consultant, $200,000 net income, age 52: - Employee deferral: $23,500 + $7,500 catch-up = $31,000 - Employer contribution: $200,000 × 0.9235 × 20% = $36,940 - Total: $67,940 (under the $77,500 cap)
Example 3 — Physician, $400,000 net income, age 45: - Employee deferral: $23,500 - Employer contribution: Limited to $70,000 - $23,500 = $46,500 (total cap applies) - Total: $70,000
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Frequently Asked Questions
What is the maximum Solo 401(k) contribution for 2026?
The 2026 maximum Solo 401(k) contribution is $70,000 for those under 50. Workers aged 50–59 or 64+ can contribute up to $77,500 with the $7,500 catch-up. Workers aged 60–63 get an enhanced catch-up under SECURE 2.0 and can contribute up to $81,250.
How do I calculate my Solo 401(k) employer contribution as a sole proprietor?
For sole proprietors: multiply your net Schedule C profit by 0.9235 (to account for the SE tax deduction), then multiply that by 20%. This gives your employer contribution. Add the employee deferral ($23,500 max) and the total is your maximum Solo 401(k) contribution for the year. The calculator above does this automatically.
Did Solo 401(k) contribution limits increase from 2025 to 2026?
Yes. The 2025 total limit was $69,000 ($76,500 with catch-up). In 2026, the total limit increased to $70,000 ($77,500 with catch-up), reflecting the IRS inflation adjustment. The employee deferral remained at $23,500.