Self-Employed · Retirement
Solo 401(k) for Real Estate Agents — 2026 Calculator
Real estate agents classified as independent contractors can shelter up to $70,000 per year with a Solo 401(k). Active agents with commission income above $100,000 typically save $15,000–$25,000 in federal taxes annually.
2026 max contribution
$70,000
Typical income range
$50,000–$250,000
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 Real Estate Agents: What You Need to Know
Business structure
Most agents receive 1099 income from their brokerage. An S-Corp election above $100,000 in net income saves substantial SE taxes. Solo 401(k) contributions work under any structure.
Income pattern & timing
Commission income varies with the market. In high-transaction years, max out Solo 401(k) contributions early. In slow years, even a small employee deferral builds retirement savings and reduces taxable income.
Key strategy
Real estate agents often forget that the home office deduction, MLS fees, and marketing expenses reduce net income for Solo 401(k) calculation purposes. Track deductions carefully — your contribution limit is based on net self-employment income, not gross commissions.
Solo 401(k) vs. SEP-IRA for real estate agents
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 real estate agents 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 real estate agent
- 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 real estate agents open a Solo 401(k)?
Yes. Self-employed real estate agents 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 real estate agent open a Solo 401(k) if they work under a brokerage?
Yes. Being affiliated with a brokerage doesn't matter — what matters is whether you receive 1099 (not W-2) income. Most agents are classified as independent contractors by their broker, which means Solo 401(k) eligibility.
What if I have a real estate team with licensed buyers' agents?
If you employ W-2 workers (not 1099 contractors), you may lose Solo 401(k) eligibility. The plan is restricted to business owners with no full-time employees other than a spouse. Contractors filing 1099s under your team don't disqualify you.
Can spouses who both work in real estate each have a Solo 401(k)?
If you run the business together, a spouse can be employed by the same Solo 401(k) plan. This effectively doubles the contribution limits for the household — up to $140,000 combined if both spouses have earned income from the business.
Other Solo 401(k) guides
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