How much you can stash tax-advantaged: SEP-IRA vs Solo 401(k).
Open the Self-Employed Retirement tool →Self-employment doesn't shut you out of retirement accounts; the opposite. Two plans let you contribute as both the 'employer' and the 'employee' of your own business. We start from your net self-employment earnings (your profit minus the deductible half of self-employment tax), then compute each plan.
A SEP-IRA lets you contribute about 20% of those net earnings (the employer share), capped at the annual defined-contribution limit. A Solo 401(k) lets you make that same ~20% employer contribution AND add an employee deferral on top, up to the 401(k) elective limit (plus a catch-up if you're 50 or older), with the combined total capped at the same overall limit. Because the deferral stacks on top, the Solo 401(k) almost always lets you save more, especially at low-to-moderate profit, while the SEP-IRA is simpler to open and administer.
Filing status and income flow to and from My Situation. The limits carry their IRS citation; this is the contribution ceiling, not advice on how much to actually save.
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