Retirement Savings Calculator
Compare Solo 401(k), SEP IRA, and other retirement plans for the self-employed. See maximum contributions and tax savings. All calculations happen right here in your browser — your numbers never leave your device, and there is nothing to sign up for.
30
Retiring at age 65
Solo 401(k)
$40,557/year
$10,139
At 25% marginal rate
| Plan Type | Max Contribution | Tax Savings | Projected at 65 |
|---|---|---|---|
Solo 401(k) | $40,557 | $10,139 | $4,330,087 |
SEP IRA | $17,057 | $4,264 | $1,931,371 |
SIMPLE IRA | $18,900 | $4,725 | $2,119,487 |
Trad/Roth IRA | $7,000 | $1,750 | $904,818 |
How to Use This Calculator
Using this calculator is straightforward. Start by entering your financial information in the fields above. You can adjust any value at any time and the results will update instantly — there is no submit button to press.
- Fill in each field with your best estimates. Exact numbers are great, but reasonable approximations work well too.
- Review the results section that appears below the inputs. Each number is labeled so you know exactly what it represents.
- Try different scenarios by adjusting your inputs. This is a great way to understand how changes in income or expenses affect your bottom line.
- Use the results to plan ahead — whether that means setting aside money for quarterly taxes, adjusting your rates, or identifying deductions you may have missed.
Understanding Your Results
The results above give you a clear snapshot of your financial situation based on the numbers you entered. Here is how to make the most of them:
Look at the big picture first. Start with the summary totals before diving into line-by-line details. This gives you a sense of where you stand overall.
Compare scenarios. Try changing your inputs to see how different situations play out. What happens if your income increases? What if you claim an additional deduction? Playing with the numbers helps you make informed decisions.
Use this as a starting point. These calculations are based on general federal rules and standard rates. Your actual tax situation may differ based on your state, filing status, and specific circumstances. When in doubt, bring these numbers to a tax professional — they make a great conversation starter.
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Frequently Asked Questions
What is the best retirement plan for freelancers?
The Solo 401(k) is often the best choice for solo freelancers because it allows both employee contributions ($23,500 in 2025) and employer contributions (25% of net SE income), for a maximum of $70,000. SEP IRAs are simpler but only allow employer contributions of 25%.
How much can I contribute to a Solo 401(k)?
In 2025, you can contribute up to $23,500 as the employee, plus up to 25% of your net self-employment income as the employer, for a total maximum of $70,000. If you're 50 or older, you can add $7,500 in catch-up contributions.
Do retirement contributions reduce self-employment tax?
No, retirement contributions don't reduce your self-employment tax — they reduce your income tax. SE tax is calculated on your net earnings before retirement contributions. However, the tax savings on income tax can be substantial.
SEP IRA vs Solo 401(k) — which is better?
Solo 401(k) usually allows larger contributions because you can make both employee and employer contributions. SEP IRA only allows employer contributions of 25%. However, SEP IRA has simpler setup and administration. Our calculator shows the exact difference for your income.