Self-Employed · Retirement
Solo 401(k) for Freelancers — 2026 Calculator
Freelancers operating as sole proprietors or single-member LLCs can shelter up to $70,000 from self-employment income in 2026 using a Solo 401(k).
2026 max contribution
$70,000
Typical income range
$50,000–$150,000
Catch-up (age 50+)
+$7,500
Deadline to open
Dec 31, 2026
Your 2026 retirement plan
Fill in your situation and click Calculate →
Solo 401(k) for Freelancers: What You Need to Know
Business structure
Most freelancers file Schedule C as sole proprietors or operate as a single-member LLC. Either structure qualifies for a Solo 401(k). At $80,000+ net income, electing S-Corp status can reduce self-employment taxes further.
Income pattern & timing
Freelance income is often irregular — front-load contributions in high-revenue months. You have until your tax filing deadline (including extensions) to fund employee contributions for the prior year.
Key strategy
Unlike a SEP-IRA, a Solo 401(k) lets you contribute as both employee (up to $23,500 in salary deferrals) and employer (up to 25% of net compensation). This dual structure is why freelancers at $60k–$100k typically shelter more with a Solo 401(k) than a SEP-IRA.
Solo 401(k) vs. SEP-IRA for freelancers
A Solo 401(k) allows both an employee deferral (up to $23,500 in 2026) and an employer contribution (up to 25% of net compensation), for a combined maximum of $70,000. A SEP-IRA only allows employer contributions — no employee deferral. This means self-employed freelancers earning under approximately $120,000 in net income can typically contribute more to a Solo 401(k) than a SEP-IRA.
How to open a Solo 401(k) as a freelancer
- Get an EIN (free at IRS.gov, takes 5 minutes online). You need this even as a sole proprietor.
- Choose a provider. Fidelity, Schwab, and Vanguard offer free Solo 401(k) plans. Fidelity supports both traditional and Roth contributions with no fees.
- Open the account before December 31 of the tax year you want contributions to count.
- Fund the account by your tax filing deadline — April 15, or October 15 if you file an extension.
Frequently Asked Questions
Can freelancers open a Solo 401(k)?
Yes. Self-employed freelancers with Schedule C or 1099 income qualify for a Solo 401(k) as long as they have no full-time W-2 employees other than a spouse. The 2026 contribution limit is $70,000 ($77,500 with catch-up for those 50+).
Can I open a Solo 401(k) if I freelance part-time?
Yes — as long as freelancing produces self-employment income and you have no full-time employees. Even $20,000 of freelance income qualifies. Just make sure your primary employer's 401(k) contributions count toward the $23,500 employee deferral limit across all plans.
Can I contribute to a Solo 401(k) and a client's 401(k) in the same year?
Yes, but the $23,500 employee deferral limit is per person, not per plan. If you defer $10,000 through your employer's plan, you can only defer $13,500 more through your Solo 401(k). The 25% employer contribution from your self-employment income is separate and unlimited by your W-2 plan.
What's the Solo 401(k) deadline for freelancers?
You must open the plan by December 31 of the tax year. Contributions can be made up to your tax filing deadline including extensions — so up to October 15 of the following year for most freelancers who file extensions.
Other Solo 401(k) guides
Free newsletter
Weekly insights for freelancers & self-employed
IRS updates, strategy breakdowns, and new tools — straight to your inbox. Free, no spam.
No spam. Unsubscribe anytime. ~1 email/week.