Self-Employed · Retirement
Solo 401(k) for Physicians — 2026 Calculator
Physicians in private practice or locum tenens arrangements can use a Solo 401(k) to shelter up to $70,000 per year. Combined with a cash balance plan, physician tax deferrals can exceed $300,000 annually.
2026 max contribution
$70,000
Typical income range
$200,000–$600,000
Catch-up (age 50+)
+$7,500
Deadline to open
Dec 31, 2026
Your 2026 retirement plan
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Solo 401(k) for Physicians: What You Need to Know
Business structure
Physicians often operate as sole proprietors, professional corporations (PC), or S-Corps. The Solo 401(k) works within any structure, with employer contributions based on W-2 salary in an S-Corp or net self-employment income in a sole proprietorship.
Income pattern & timing
Physician income is typically consistent year over year. Max contributions every year — the compounding effect on a $70,000 annual contribution over 20 years at 7% exceeds $3 million.
Key strategy
At physician income levels ($300,000+), a Solo 401(k) alone often isn't enough for optimal tax deferral. Pair it with a defined benefit (cash balance) plan to defer an additional $100,000–$250,000 per year. The two plans can operate simultaneously.
Solo 401(k) vs. SEP-IRA for physicians
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 physicians 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 physician
- 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 physicians open a Solo 401(k)?
Yes. Self-employed physicians 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 locum tenens physician open a Solo 401(k)?
Yes. Locum tenens income is typically 1099-NEC self-employment income, which fully qualifies for a Solo 401(k). Many locum physicians travel between states — each engagement still counts as self-employment income regardless of the state.
Can I pair a Solo 401(k) with a cash balance pension plan?
Yes, and this is common for high-earning physicians. A Solo 401(k) can run alongside a defined benefit or cash balance plan. Combined, these plans can shelter $200,000–$350,000+ per year from taxes for physicians in their peak earning years.
What about physicians employed by a hospital with a 403(b)?
If you also have independent 1099 income (consulting, expert testimony, speaking fees, locum work), that income qualifies for a Solo 401(k). The $23,500 employee deferral is shared with your 403(b), but the employer contribution from self-employment income is separate.
Other Solo 401(k) guides
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