Solo 401k Calculator

How much can I contribute into a Solo 401k, SEP IRA, Defined Benefit Plan or SIMPLE IRA?

Using the retirement calculator you can calculate the maximum annual retirement contribution limit based on your income. Enter your name, age and income and then click "Calculate."

The result will show a comparison of how much could be contributed into a Solo 401k, SEP IRA, Defined Benefit Plan or SIMPLE IRA based on your income and age. If you are taxed as a sole proprietorship use your NET income when using the calculator. If you are incorporated, then only use your W-2 wages when using the calculator. For example, S corporation K-1 distributions (corporate profits) are not included when making the contribution limit calculation.

Note: Consider a Defined Benefit Plan if you want to contribute more than the Solo 401k contribution limit. A Solo 401k can be combined with a Defined Benefit Plan to maximize annual contributions. Total contributions can be $60,000 to $200,000 or more. We provide more information about them on our website www.definedbenefitplan.com.

Name
Yearly Income
Age     Year 
Business Type
Sole proprietorship, partnership (or LLC taxed as a sole proprietorship)
S corporation, C corporation (or LLC taxed as a corporation)
  

How are the Solo 401k contribution limits calculated?

The 2020 Solo 401k contribution limits are $57,000 and $63,500 if age 50 or older. The annual Solo 401k contribution consists of 2 parts a salary deferral contribution and a profit sharing contribution. The total allowable contribution adds these 2 parts together to get to the maximum Solo 401k contribution limit.

Solo 401k contribution calculation for a sole proprietorship, partnership or an LLC taxed as a sole proprietorship.

  • Salary Deferral Contribution
  • Although the term salary deferral is used, these businesses do not provide a W-2 salary to the business owner. For businesses of this type, the salary deferral contribution is based on net adjusted business profit. Net adjusted business profit is calculated by taking gross self employment income and then subtracting business expenses and then subtracting 50% of the self employment tax. In 2020, 100% of net adjusted business profits income up to the maximum of $19,500 and $26,000 if age 50 or older can be contributed in salary deferrals into a Solo 401k.  
  • Profit Sharing Contribution
    A profit sharing contribution can be made up to 20% of net adjusted businesses profits. Net adjusted business profit is calculated by taking gross self employment income and then subtracting business expenses and then subtracting 50% of the self employment tax. You will want to ask your tax professional for assistance with this calculation..

Learn more about the Solo 401k Contribution Limits for a sole proprietorship, partnership or an LLC taxed as a sole proprietorship.

Solo 401k contribution calculation for an S or C corporation or an LLC taxed as a corporation

  • Salary Deferral Contribution
  • In 2020,100% of W-2 earnings up to the maximum of $19,500 or $26,000 if age 50 or older can be contributed to a Solo 401k.
  • Profit Sharing Contribution
    A profit sharing contribution up to 25% of W-2 earnings can be contributed into a Solo 401k.

Learn more about the Solo 401k Contribution Limits for a for an S or C corporation or an LLC taxed as a corporation.


Beacon Capital Management Advisors provides retirement plans to the self employed, freelancers, entrepreneurs, independent contractors and small business owners and is registered in all 50 States.