Self-Employed · Retirement
Solo 401(k) for Nurse Practitioners — 2026 Calculator
Nurse practitioners with 1099 income from locum, per-diem, or private practice work can open a Solo 401(k). Combining solo contractor income with strong earning potential makes NPs great candidates for tax-deferred savings.
2026 max contribution
$70,000
Typical income range
$80,000–$180,000
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 Nurse Practitioners: What You Need to Know
Business structure
NPs working locum or per-diem shifts typically receive 1099-NEC income. Those in private practice may operate as an LLC or professional corporation. Solo 401(k) contributions apply to all self-employment income.
Income pattern & timing
1099 NP shifts are often booked on a per-diem basis. Track all 1099 income throughout the year — a Solo 401(k) account must be opened by December 31 even if contributions are made later.
Key strategy
NPs who hold both a W-2 position and 1099 locum shifts can participate in both their employer's 401(k) and a Solo 401(k). The employer contribution from locum income (25% of net SE income) is separate from any W-2 plan deferrals.
Solo 401(k) vs. SEP-IRA for nurse practitioners
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 nurse practitioners 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 nurse practitioner
- 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 nurse practitioners open a Solo 401(k)?
Yes. Self-employed nurse practitioners 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 a nurse practitioner open a Solo 401(k) for locum tenens income?
Yes. Locum tenens income paid via 1099-NEC is self-employment income. You qualify for a Solo 401(k) even if you also hold a full-time W-2 hospital position. The $23,500 employee deferral is shared between both plans, but the employer contribution from locum income is calculated separately.
I'm opening my own NP practice. When do I lose Solo 401(k) eligibility?
When you hire your first full-time W-2 employee (anyone working 1,000+ hours per year). At that point, you need a plan that covers employees — a SIMPLE IRA is the lowest-cost option for small practices (up to $16,500 per year per employee).
What about NPs running telehealth businesses?
Telehealth practice income is self-employment income if you operate independently (not as a W-2 employee of the telehealth platform). 1099-NEC from telehealth companies qualifies for Solo 401(k) contributions.
Other Solo 401(k) guides
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