Solo 401(k) Contribution Calculator

• An employee contribution of , plus
• An employer contribution of , plus
• A catch-up contribution of .

Where Did This Answer Come From?

With a solo 401(k), you are allowed to make contributions in the role of employee and the role of employer. Specifically, you are allowed to make:

1. An employee contribution of for ,
2. An employer contribution of 20% of your “net earnings from self-employment,” and
3. A catch-up contribution of for if you are 50 or older.

In this case, your net earnings from self-employment is defined as your business’s profit (), minus the deduction for one half of your self-employment tax ().

However, there are an assortment of limitations to the above contributions.

1. If you have another job (i.e., a “day job”), your maximum employee contribution is reduced by any contributions you made as an employee to another 401(k) or 403(b). Ditto for catch-up contributions.
2. The employer contribution is limited to half of the difference between your net earnings from self-employment and the employee contribution.
3. The employee and employer contributions are limited to a combined total of for .
4. The total contribution is limited to your net earnings from self-employment.

Important notes:

• Various amounts in this explanation may be off slightly due to rounding of cents.
• Solo 401(k) plans are complicated, so it’s likely a good idea to consult with your tax professional.