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New Calculator: Solo 401(k) Contribution Limits

Self-employed retirement plans — SEP IRAs, SIMPLE IRAs, and solo 401(k)s — are one of the topics people ask me about most frequently. Of the three, people ask most often about solo 401(k) plans because:

  1. They have the highest contribution limits, and
  2. Calculating your contribution limit can be rather complicated.

There are plenty of online contribution calculators of course, but many of them (e.g., Fidelity’s or Bankrate’s) provide the wrong answer in some cases. There are some calculators (e.g., Vanguard’s or TurboTax) that get the right answer reliably, but they offer no accompanying explanation of where the answer came from, so they have limited usefulness as learning tools.

So I recently decided to make my own, which both calculates the contribution limit and explains how that limit was calculated. You can find the calculator here:

Please take a look at it. If you have any suggestions of ways to make it better, I’m all ears. (Though to be clear my coding skills — especially javascript, in which the calculator is written — are decidedly beginner-level.)

For More Information, See My Related Book:

Independent Contractor, Sole Proprietor, and LLC Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • Estimated tax payments: When and how to pay them, as well as an easy way to calculate each payment,
  • Self-employment tax: What it is, why it exists, and how to calculate it,
  • Business retirement plans: What the different types are, and which one is best for you,
  • Click here to see the full list.
A testimonial from a reader on Amazon:
"Quick and easy read. No fluff, just straight to the point and gives you more helpful information that you might imagine. If you are looking to get the bottom line information you need to start your business right then this book is a must have."
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My new Social Security calculator (beta): Open Social Security