How much can you contribute to a Solo 401(k) in 2026?

The total Solo 401(k) contribution limit for 2026 is $72,000 up to age 49, $80,000 for age 50 and over, and $83,250 for ages 60 to 63. That total combines your employee contribution and your business's employer contribution.

What is the employee contribution limit for a Solo 401(k) in 2026?

The employee limit is $24,500 up to age 49. At age 50 and over you can add an $8,000 catch-up, for $32,500. At ages 60 to 63 the catch-up is $11,250, for $35,750.

Can I have a Solo 401(k) and a 401(k) from a W-2 employer or union?

Yes. You get one employee contribution limit per year, shared across all of your 401(k) and Solo 401(k) accounts. Each employer, including your own business, has its own separate employer contribution limit.

What happens if I contribute too much to my Solo 401(k)?

Ask your provider whether the employee contribution can be reclassified as an employer contribution, or request a corrective distribution of the excess plus earnings. If you correct it by April 15, the earnings are taxed as ordinary income and you avoid the penalty. If you miss April 15, the excess is hit with a 10% excise tax each year it stays in the plan.

When do I have to file IRS Form 5500-EZ for a Solo 401(k)?

You must file Form 5500-EZ each year once your Solo 401(k) plans together hold more than $250,000 at year-end, and in the year you close the plan. Failing to file can bring significant IRS fines.

How much can you contribute every year to the 401 (k)?

Updated Nov, 2026

We Can Contribute Nearly 3x More Than Regular 401(k) Holders ‍

The exact amount depends on your age and how much you earn—it can get a bit wonky, but hang in there; you’ll get it.

Total contribution limit of the Solo 401(k) in 2026

$72,000 up to age 49
$80,000 for age 50+
$83,250 for age 60-63

(In comparison, a staff or government employee can only contribute $24,500/ age 50+ $32,500 )

Read how to hit the maximum limits with the Mega Backdoor Roth.

Remember, you are the employer and the employee with a Solo 401(k). You add your contribution plus what your company can put in.

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Employee (you) contribution limit per year in 2026

Up to Age 49: $24,500
Age 50+: $24,500+$8,000 catch-up = $32,500 if you’re 50+
Age 60-63: $24,500+$11,250 catch-up = $35,750

If you have a 401(k) with a staff job and a Solo 401(k) with your freelance biz, the employee limit is shared across all 401(k) accounts you have.

NEW in 2026: S-Corps — If you pay yourself $150,000+ in W-2 wages, the catch-up part of your contribution must go into a Roth Solo 401(k). You can have a pre-tax and a Roth Solo 401(k) side by side. Sole Proprietors and LLC’s that do not pay yourself via W-2: this change does not affect you.

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Employer contribution limit per year (that’s you again; you’re the employer)

Up to an additional 25% of the W-2 you pay yourself if you are an S-Corp.
If you are Self-Employed, not an S-Corp
If you’re a Sole Proprietor or LLC and don’t pay yourself a salary through payroll, you have to calculate how much your business can contribute to the Solo 401(k). It ends up around 20%. Financial Advisor Mike Piper comes to the rescue with his excellent calculator.
Or use IRS Publication 560, which is the IRS going nutso with their crazy worksheets. Scroll down to the page on their website above to the heading 5. Table and Worksheets for the Self-Employed.
Take something calming, grab your Form 1040 tax return from last year, and go through the worksheet to figure out your maximum contribution. It’s a mind-bender and a pain in the ass, but stick it out.

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Your spouse —
How much can they contribute to a Solo 401(k)?

As you have seen above, the Solo 401(k) is reasonably simple, but it's a little complicated when it comes to how much your spouse can contribute. For this, I would definitely talk to your accountant, as your business structure (sole trader, partnership, S-Corp) and whether your spouse is a co-owner or an employee affect how much they can contribute.
Theoretically, your spouse could get to the maximum numbers above the same as you.
Solo401k.com has a great calculator, but again, please check with your accountant. https://www.solo401k.com/calculator

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My real-life example in 2025. I went for the maximum amout allowed:

I contributed $31,000 to the Solo 401(k) as an employee; I’m 50.
I’m an S-Corp, a one-person company. I paid myself $186,000 per year via payroll; I’m a W-2 employee of my company. My company can then contribute an additional 25% on top of the $186,000 into the Solo 401(k), which is $46,500.
$31,000 + $46,500 = $77,500 in to the Solo 401(k).
I use a deferred contribution, so it’s pre-tax, not a Roth. That’s a $77,500 tax deduction on my income! Example: If I earned $250,000 that year, I would only get taxed on $172,500.
Yes, that’s a lot. I have no kids, so I can contribute like this. Put in what you can; it all matters.

What if I have a job with a 401(k) from an employer or Union, AND I want a Solo 401(k) for my freelance biz?

Situation: You are paid W-2 by an employer, but you also pay yourself an income from your own freelance business (Sole Trader, LLC, S-Corp).

Employee Contribution.

Across all 401(k) and Solo 401(k) accounts, you only get one employee (that’s you as a person) contribution limit per year. In 2026, that limit is $24,500, or $32,500 if you are age 50+. You only get that once across all plans.
You can contribute 100% of your compensation up to the yearly limit. If you earn $20,000 after expenses in a year with your freelance business, you can contribute the whole $20,000 as an employee.

Example of contributing to an employer 401(k) and your business Solo 401(k): You contribute $10,000 to your W-2 employer’s 401k and $14,500 to your freelance biz’s Solo 401(k). Total $24,500 for someone up to age 49. (If your outside employer gives you a match, contribute the amount they will match, since that is free money, then put the rest of your personal contribution in your freelance Solo 401(k).

Employer Contribution

Each employer gets a separate employer contribution limit. Your outside W-2 employer can contribute to that 401(k) plan, and your freelance business can contribute its own amount of 20% (Sole Trader) or 25% (S-Corp) to your Solo 401(k) plan.
In this case, you have two employers with their own separate contribution limits:
- The outside employer that pays you a W-2 wage.
- Your business paying you is the second employer.

Employer Contribution Amount Limit Test

Think of this as another IRS rule on the limits so people don’t take the piss and contribute more to a Solo 401(k) than they actually earn in their business. The employer limits above are still the maximum limits your business can contribute, but you must also pass this contribution test.
Your freelance business’s Solo 401(k) employer contribution cannot be more than half the difference between the net self-employment income and the employee contribution. (Please chat with your accountant about it.)
- Example: If your income from your freelance biz is $100,000 and your employee contribution to the Solo 401(k) is $23,000. The max. employer contribution in this case is ($100,000 - $23,000) ÷ 2 = $38,500
- Another Example: Your income from your freelance biz is $50,000, and your employee contribution to the Solo 401(k) is $23,000. ($50,000 - $23,000) ÷ 2 = $13,500. So, your maximum employer contribution in this case is $13,500.

Want to really dig into this? Dr. Jim Dahle, over at the White Coat Investor, has a great post on multiple Solo 401(k) accounts. WCI is a highly respected website.

Solo 401(k) Deadlines for 2026

What you want to do	You are a Sole ProprietorYou file a Schedule C, or you have a one-person LLC	You are an S-CorpYour company gives you a paycheck (a W-2)
Put in your own moneyThe part that comes from you, including the extra allowed at 50 and older	Deposit by Dec 31, 2026 to be safe. You may be able to deposit as late as Apr 15, 2027 (Oct 15, 2027 if you file for a tax extension), but only if you decided by Dec 31 to contribute for 2026. Write that decision down and date it.	Deposit by Dec 31, 2026, taken out of your paychecks. No do-overs after the year ends. This is the one people miss.
Put in money from your businessThe part your business adds for you	Apr 15, 2027, or Oct 15, 2027 if you file for a tax extension.	Mar 15, 2027, or Sep 15, 2027 if you file for a tax extension. Use your company's tax deadline, not your personal one.
Put in extra after-tax moneyThe "Mega Backdoor Roth" move	Check your plan's rules (your plan provider can tell you). It's usually Dec 31, 2026, just like your own money above.
Open a brand-new plan for 2026	Open it by Oct 15, 2027 (the extended tax deadline). Good news: a brand-new plan opened after Dec 31 can still take your own 2026 deposits until Apr 15, 2027 (no tax extension allowed for this one). This only works once, in the plan's first year.	Open it by Mar 15, 2027 (Sep 15, 2027 if you file for a tax extension). Only your business's contribution counts for 2026. Your own paycheck savings generally can't be added for 2026 after the year ends.
File the yearly plan report (Form 5500-EZ)Only needed if your plan holds more than $250,000 at year-end (all your solo plans added together), and in the year you close the plan	Due Jul 31, 2027. That's a Saturday, so you get until Mon, Aug 2, 2027. Need more time? File Form 5558 by the original due date to push it to Oct 15, 2027.

Sources: IRS: One-participant 401(k) plans · IRS Publication 560 · IRS: S-corp contribution FAQ · IRS: 2026 limits · IRS: Catch-up contributions · IRS: Form 5500 corner · IRS: Plans opened after year-end · Treasury Reg. 1.401(k)-1

Wait, I messed up and contributed too much!

Contact your solo 401(k) provider and see if you can re-classify the employee contribution to the employer contribution. If that isn’t possible, request a corrective distribution of the excess + attributable earnings.
Report it properly — the provider will issue a 1099-R. You include the earnings in income on your tax return.

If you catch it by April 15 (Tax Day): You can withdraw the excess plus any earnings on it. The earnings get taxed as ordinary income in the year of the contribution, but you dodge the penalty.

If you miss April 15: Not so good. The excess contribution gets hit with a 10% excise tax every year it stays in the plan.

And, as always, chat to your trusty, but overwhelmed, accountant.

Details on the IRS website regarding over-contributing are here.

WARNING!! IRS Form 5500-EZ:

Up to a $150,000 fine yearly (but most likely $500 annually up to $1,500). Yes. It’s the only red box on the site for a reason.

This has caught a few people out, including myself. Once your Solo 401(k) reaches $250,000, you must file IRS form 5500-EZ annually. If you don’t, you face severe fines. Why does the IRS massively fine us? I have no idea; I cannot see the harm done to the Feds or the taxpayer if we forget to file it.

Schwab does NOT send you a notification or reminder. Some other providers may alert you, and some even file the 5500-EZ for you. It’s a real mess.

I suggest getting a tattoo somewhere on your body as a reminder to file it.

I have a blog post on the form in The Knowledge.

Jamie Lee Curtis plays an IRS agent. She is wearing a mustard yellow turtleneck, a white cardigan, and necklaces. The desk has papers, a phone, and framed photos. The background shows a large office with many cubicles and people working.

Yep, the IRS will fine your ass for this one.

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Emergency withdrawals from the Solo 401(k)

If the shit hits the fan and you need money fast because of an emergency, you may be tempted to pull from your Solo 401(k) before retirement. This should be your last resort, as you are hurting Future You. The money you pull out is growing and making you wealthy. Example: $20,000 today will be $77,000 based on a 7% growth rate in 20 years. See an accountant before you do anything, as the rules are complex, but basically:

You will pay a 10% penalty unless you can show it’s a ‘hardship withdrawal’ such as:
- You become permanently disabled,
- Have qualifying medical expenses
- Need the funds due to financial hardship.
- Additionally, the IRS may allow penalty-free withdrawals in certain situations, such as when using funds to purchase a first home.
You will pay income tax on the withdrawal; there is a mandatory 20% that the Solo 401(k) provider must withhold.
Example: If you pull out $20,000, you only get around $14,400 after the penalty.
Schwab does not allow loans, but you can with the E*Trade Solo 401(k), or with a custom plan from Mysolo401k.
You may be able to withdraw deposited funds (not any gains) from a Roth Solo 401(k) without penalty, but again, that is a tricky one.
Please talk to your accountant before making any moves.

Next section 3, what to invest in, inside the Solo 401(k). Let’s go shopping!