Free Financial Tool
SEP-IRA vs Solo 401(k) Calculator
Compare maximum tax-deductible contribution limits for self-employed retirement vehicles for 2024/2025.
Maximum Contribution Comparison
2024/2025 Annual Limit Cap: $69,000Solo 401(k) Max Contribution
$0
Employee Deferral + Employer Profit Share
SEP-IRA Max Contribution
$0
20% of Adjusted Net Profit
Solo 401(k) Employee Deferral
$0
Up to $23,000 (or $30,500 if 50+)
Solo 401(k) Employer Share
$0
20% profit-sharing contribution
Why Solo 401(k) Usually Wins:
With a Solo 401(k), you can contribute as both the "employee" (up to $23,000) AND the "employer" (up to 20% of profit). At lower to mid-range incomes (e.g. $50,000–$100,000), this allows you to shelter significantly more income from taxes compared to a SEP-IRA.