How to Use the Self-Employed Retirement Tax Savings Calculator
SEP-IRAs and Solo 401(k)s let self-employed individuals and small business owners shelter income from taxes while saving for retirement. You can contribute up to 25% of your net self-employment earnings, capped at $69,000 for 2024, and the full contribution is tax-deductible.
Enter your net self-employment income, planned contribution, and marginal tax bracket to see your maximum allowed contribution, deductible amount, and estimated tax savings. This is a simplified estimate — the actual SEP-IRA limit involves a self-employment tax adjustment, so confirm exact figures with a tax professional or your IRA provider before filing.
Frequently Asked Questions
You can contribute up to 25% of net self-employment earnings, capped at $69,000 for 2024 (indexed annually). The exact calculation involves a self-employment adjustment, so consult a tax professional for precision.
Both offer similar contribution limits for self-employed individuals, but a Solo 401(k) allows an additional employee salary deferral, potentially letting you contribute more at lower income levels.
SEP-IRA contributions can be made up until your tax filing deadline, including extensions, for the prior tax year.