Freelance Retirement Calculator: Plan Solo 401(k) & SEP IRA Contributions in 2026

Calculate optimal retirement contributions for self-employed professionals. Compare Solo 401(k) vs SEP IRA vs SIMPLE IRA, estimate tax savings, and project retirement savings growth based on variable freelance income.

Mathematical Audit

How Freelance Retirement Contributions Are Calculated

Self-employed individuals can contribute to a Solo 401(k) as both employee and employer. SEP IRA limits are simpler but lower. Both reduce taxable income dollar-for-dollar.

Net Self-Employment Income = Gross Revenue − Expenses − (SE Tax × 50%)
Solo 401(k) Employee Contribution = up to $23,500 (2026, +$7,500 catch-up if 50+)
Solo 401(k) Employer Contribution = Net SE Income × 25% (up to $69,000 total in 2026)
SEP IRA Limit = Net SE Income × 25% (max $69,000 in 2026)
Tax Savings = Contribution Amount × Marginal Tax Rate
Retirement Projection = PV × (1 + r)^n where r = annual return, n = years to retirement

Solo 401(k) requires a plan document before December 31 of the tax year. SEP IRA can be opened up to tax filing deadline including extensions.

Operational Guide

How to Use the Freelance Retirement Calculator

1

Enter your net self-employment income

Annual profit after business expenses and the 50% SE tax deduction.

2

Select your retirement plan type

Solo 401(k), SEP IRA, or SIMPLE IRA — each has different contribution rules and limits.

3

Enter your age and retirement goal

Used to calculate how many years your contributions will grow and if catch-up contributions apply.

4

Click Calculate

See maximum contributions, tax savings, projected retirement balance, and annual vs monthly contribution targets.

Real-World Scenario Example

"A 40-year-old freelancer with $100,000 net SE income maxing a Solo 401(k) contributes $48,500 ($23,500 employee + $25,000 employer) saving $17,460 in taxes at 36% effective rate."

Inputs

netSEIncome:100000
planType:solo-401k
age:40
retirementAge:65

Result

$48,500 max contribution | $17,460 tax savings | ~$2.4M projected at 65 (7% return)

Important Disclaimer

Retirement contribution limits change annually. This calculator uses 2026 IRS limits. Projections assume consistent returns and do not guarantee future performance. Consult a financial advisor for personalized retirement planning. ToolGenieHub is not liable for financial decisions made based on these estimates.