Quick answer
For 2026, a Solo 401(k) lets you contribute in two roles:
- As the employee: up to $24,500, or 100% of net self-employment earnings if lower.
- As the employer: about 20% of net self-employment earnings (25% for S corp owners, based on W-2 wages).
- Combined cap: $72,000, not counting catch-ups.
Catch-ups sit on top: $8,000 at age 50 or older, or $11,250 if you’re 60 to 63 at year-end. That puts the maximum at $80,000 for ages 50 to 59 and 64+, and $83,250 for ages 60 to 63.
2026 Solo 401(k) limits in one table
| Limit | 2026 amount |
|---|---|
| Employee deferral (traditional plus Roth) | $24,500 |
| Catch-up, age 50+ | $8,000 |
| Super catch-up, ages 60 to 63 | $11,250 (instead of $8,000) |
| Total annual additions, section 415(c) | $72,000 |
| Maximum compensation counted | $360,000 |
| Roth catch-up wage threshold | $150,000 of prior-year FICA wages |
| Form 5500-EZ filing | Required once plan assets reach $250,000 at year-end |
The $24,500 deferral is a per-person limit. If you also defer at a W-2 job, the two amounts share it. The employer contribution in your own plan is separate.
How to calculate your maximum
Sole proprietors and single-member LLCs
Your “compensation” is net profit minus half of your self-employment tax. The employer contribution is 20% of that figure. IRS Publication 560 has the worksheet.
| Step | Example: $150,000 net profit |
|---|---|
| Self-employment tax | $21,194 |
| Minus half of SE tax | $139,403 net SE earnings |
| Employer contribution (20%) | $27,881 |
| Employee deferral | $24,500 |
| Total, under age 50 | $52,381 |
Under 50, a sole proprietor reaches the full $72,000 at about $252,000 of net profit.
S corporation owners
The employer contribution is 25% of your W-2 wages from the S corp, not your total profit. Distributions don’t count. A low salary saves payroll tax but also shrinks this contribution.
Worked example: the age 60 to 63 super catch-up
Maya is 62 and runs a one-person consulting business with $150,000 of net profit in 2026.
| Contribution | Amount |
|---|---|
| Employee deferral | $24,500 |
| Super catch-up (age 60 to 63) | $11,250 |
| Employer contribution (20% of $139,403) | $27,881 |
| Maya’s total | $63,631 |
A 45-year-old with the same profit could put in $52,381. The super catch-up adds $11,250 for Maya.
If Maya’s profit were $300,000, her base contributions would hit $72,000, and the catch-up would lift her total to $83,250. At 64, the catch-up drops back to $8,000.
Roth options and the new Roth catch-up rule
Roth deferrals
Most providers let you make the $24,500 deferral as Roth. You pay tax now, and qualified withdrawals are tax-free later. SECURE 2.0 also lets plans accept Roth employer contributions, but many prototype plans don’t offer that yet.
The Roth catch-up rule from 2026
Starting in 2026, if your FICA wages from the plan sponsor were above $150,000 in the prior year, your catch-up contributions must be Roth.
- S corp owners who paid themselves more than $150,000 of W-2 wages in 2025 must make 2026 catch-ups as Roth. The plan must offer Roth, or no catch-up is allowed.
- Sole proprietors and partners with only self-employment income have no FICA wages. Under the final regulations, they are not subject to the Roth catch-up requirement.
If you’re near the threshold, check that your plan document includes a Roth feature before you contribute.
How to maximize your Solo 401(k)
- Open the plan in time. A sole proprietor with no employees can adopt a new plan for 2026 up to the filing deadline, without extensions. For an existing plan, make your deferral election by December 31.
- Front-load deferrals if cash flow allows. You can deposit employee deferrals through the year and the employer part at tax time, up to the extended deadline.
- Pick traditional or Roth on purpose. Traditional cuts your 2026 tax bill. Roth may be better if your income is low this year.
- Consider the QBI trade-off. Deductible contributions reduce qualified business income, which slightly reduces the 20% QBI deduction.
- Track assets for Form 5500-EZ. Once total plan assets reach $250,000 at year-end, file by the last day of the seventh month after year-end (July 31 for calendar-year plans). Late-filing penalties can be steep.
- Watch the employee rule. Hire a non-spouse employee who meets eligibility rules, and a Solo 401(k) may no longer fit.
Contributions for yourself are deducted on Schedule 1 of Form 1040. They cut income tax, but not self-employment tax.
Traditional or Roth: a quick guide
| If this describes you | Traditional deferrals may fit | Roth deferrals may fit |
|---|---|---|
| Current tax bracket | 22% or higher | 12% or lower |
| Expected income in retirement | Lower than today | Similar or higher |
| Goal | Cut this year’s tax bill | Tax-free withdrawals later |
| ACA subsidy | Need to lower MAGI | Not relevant |
You can split deferrals between the two in the same year, as long as the total stays within $24,500 plus any catch-up. Employer contributions are pre-tax by default. If your plan allows Roth employer contributions, they’re included in your taxable income for the year.
Traditional contributions also lower your adjusted gross income, which can help with ACA premium tax credits and other income-tested benefits. Roth contributions don’t lower AGI, but they build a pool of money that won’t add to taxable income in retirement. Many freelancers use a mix and adjust it each year as income changes.
Frequently asked questions
Is the $72,000 limit per plan or per person?
The $72,000 limit applies per employer. If you have a W-2 job with its own 401(k), your employee deferrals share the $24,500 limit, but your Solo 401(k) can still receive its own employer contributions.
Can my spouse contribute too?
Yes, if your spouse earns income from the business. Each spouse gets their own limits, which can roughly double what a household saves.
Who qualifies for the $11,250 super catch-up?
You qualify if you turn 60, 61, 62 or 63 during 2026. It replaces the regular $8,000 catch-up for those years.
What if I contribute too much?
Excess deferrals should be withdrawn, with earnings, by April 15 of the following year to avoid double taxation. Ask your provider how to process a corrective distribution.
This article is general information, not tax or investment advice. Consult a CPA or Enrolled Agent for your situation.
Related guides
- SEP IRA Explained: Contribution Limits and Deadlines
- Best Solo 401(k) Providers for Freelancers
- Health Insurance for Self-Employed: Your Options in 2026
- ACA Marketplace for Freelancers: How Subsidies Work
About this guide
Written by the Freelancer Tax HQ editorial team, based on our professional experience, official US government sources (IRS, SSA and other agencies) and reputable informational articles listed in the sources below. Last reviewed on . Tax rules change often, and we update this guide when they do. Read our editorial policy or report an error.
Sources
IRS: 401(k) limit increases to $24,500 for 2026; IRS Notice 2025-67; IRS: One-participant 401(k) plans; IRS Publication 560; Trucker Huss: The Roth catch-up regulations are final; IRA Financial: The 2026 Solo 401(k) Roth catch-up rule. Example figures are FreelancerTaxHQ illustrations.
Official resources linked in this guide: IRS: Self-Employment Tax; IRS: Tax preparer credentials.