Self-Employed · Retirement
Solo 401(k) for Rideshare & Gig Workers — 2026 Calculator
Uber, Lyft, and DoorDash drivers receive 1099-NEC income and qualify for a Solo 401(k). Even part-time gig income of $20,000 per year can shelter up to $23,500 in taxes using the employee deferral alone.
2026 max contribution
$70,000
Typical income range
$20,000–$70,000
Catch-up (age 50+)
+$7,500
Deadline to open
Dec 31, 2026
Your 2026 retirement plan
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Solo 401(k) for Rideshare & Gig Workers: What You Need to Know
Business structure
Gig workers are independent contractors filing Schedule C. Mileage deductions (67¢ per mile in 2026) significantly reduce net income — your Solo 401(k) employer contribution is based on this reduced net figure.
Income pattern & timing
Gig income is highly flexible. Full-time drivers with consistent income should maximize contributions. Part-time drivers can use Solo 401(k) primarily for the employee deferral (up to $23,500) even if the employer contribution from lower net income is modest.
Key strategy
Track every mile — the standard mileage deduction reduces net SE income for both SE tax and Solo 401(k) employer contribution purposes. Use an app (Everlance, MileIQ) to log rides, not just the platform's summary.
Solo 401(k) vs. SEP-IRA for rideshare & gig workers
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 rideshare & gig workers 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 rideshare driver
- 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 rideshare & gig workers open a Solo 401(k)?
Yes. Self-employed rideshare & gig workers 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 driving is my only income?
Yes. As long as you have net self-employment income after expenses, you qualify. You must open the account by December 31 even if you fund it before your April/October filing deadline.
If I drive for multiple platforms (Uber + DoorDash), can I combine that income?
Yes. All 1099-NEC income from gig platforms is combined on Schedule C as your total self-employment income. Your Solo 401(k) contribution limit is calculated on your total net income across all platforms.
Is the employer Solo 401(k) contribution worth it for a gig worker?
The employer contribution (approximately 20% of net SE income) is worthwhile even at modest income levels. At $40,000 gross / $28,000 net after mileage, the employer contribution is approximately $4,900 on top of your $23,500 employee deferral — still meaningful tax savings.
Other Solo 401(k) guides
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