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Self-Employed Retirement Calculator

SEP-IRA vs Solo 401(k) vs SIMPLE IRA vs Traditional IRA — all four computed side by side for your exact 1099 income. See max contribution, immediate tax savings, projected balance, and monthly retirement income before you decide which account to open.

SE Tax Rate15.3%
QBI Deduction20%
Quarterly DeadlinesApr · Jun · Sep · Jan

Your situation

Projection settings

Annual return7%
3%7% = historical avg12%
Marginal tax rate28%
10%combined SE + income55%

Solo 401(k) Roth election (employee portion)

Roth = no deduction now, tax-free withdrawals later. Employer profit-sharing always pre-tax.

SE Tax (15.3%)

$11,304

Half-SE deduction

$5,652

Net SE compensation

$74,348

Best contribution
$41,587
Solo 401(k)
Tax savings
$11,644
this year
Projected balance
$4.1M
in 30 yrs
Monthly income
$13,729
at 4% withdrawal

All four accounts compared

SEP-IRA

25% of net SE compensation, max $69,000 (2024)

Employer / profit-sharing$18,587
Total contribution$18,587
27% of limit usedmax $69,000

Tax saved

$5,204

Projected

$1.9M

Mo. income

$6,487

Traditional only — no Roth SEP-IRA option

BEST OPTION

Solo 401(k)

Employee: up to $23k + employer: 25% of net SE comp, total max $69k

Employee deferral$23,000
Employer / profit-sharing$18,587
Total contribution$41,587
60% of limit usedmax $69,000

Tax saved

$11,644

Projected

$4.1M

Mo. income

$13,729

Employee + employer portions are pre-tax (Traditional). Roth option available for employee deferral.

SIMPLE IRA

Employee: up to $16k + 2% employer non-elective

Employee deferral$16,000
Employer / profit-sharing$1,487
Total contribution$17,487
100% of limit usedmax $17,487

Tax saved

$4,896

Projected

$1.8M

Mo. income

$6,140

Traditional only — no Roth SIMPLE IRA. Must open before Oct 1 of the plan year.

Traditional IRA

$7k max; deductibility may be limited if you have another workplace plan

Employee deferral$7,000
Total contribution$7,000
100% of limit usedmax $7,000

Tax saved

$1,960

Projected

$852k

Mo. income

$2,838

Roth IRA alternative: $7k max, no deduction now, tax-free withdrawals in retirement. Phases out at $146k–$161k (single, 2024).

Solo 401(k) vs SEP-IRA — the key difference

At lower income levels (under ~$150k net SE income), the Solo 401(k) wins because the employee elective deferral ($23,000) is on top of the 25% employer portion. The SEP-IRA only allows the 25% employer contribution. At very high income (near $276k+), both hit the $69,000 cap and become equal. SIMPLE IRA has lower limits but minimal admin — no annual Form 5500 required. Traditional IRA is a backup if you don't qualify for the others or already max them out.