Solo 401(k) Contribution — Tax Deduction Guide 2026
Self-employed can contribute as both employee and employer to Solo 401(k).
Eligibility
Self-employed with no employees (except spouse)
Tax Savings Calculator
Estimated Tax Savings
$1,100
At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.
Savings by Tax Bracket
Requirements
- 1$23K employee + 25% employer
- 2$69K total max
- 3No other employees
Common Mistakes to Avoid
- !Having non-spouse employees
- !Not considering Roth option
Required Tax Forms
Calculate Your Full Tax Savings
Use our free tax calculators to optimize your entire tax return.
Frequently Asked Questions
What is the Solo 401(k) Contribution?
Self-employed can contribute as both employee and employer to Solo 401(k).
Who is eligible for the Solo 401(k) Contribution?
Self-employed with no employees (except spouse)
How much can I save with the Solo 401(k) Contribution?
The average tax savings is $18,000 per year. The maximum deduction is $69,000. Your actual savings depend on your tax bracket and qualifying amount.
What forms do I need for the Solo 401(k) Contribution?
You'll need to file Form 5500-EZ to claim this deduction.
What are common mistakes with the Solo 401(k) Contribution?
Common mistakes include: Having non-spouse employees; Not considering Roth option. Always double-check requirements before filing.
Is the Solo 401(k) Contribution worth claiming?
With average savings of $18,000, the solo 401(k) contribution is highly valuable. Make sure you meet all eligibility requirements.
Related Calculators
Traditional IRA Contribution
Avg savings: $1,540/year
401(k) Contribution
Avg savings: $5,060/year
SEP-IRA Contribution
Avg savings: $15,000/year
SIMPLE IRA Contribution
Avg savings: $3,520/year
Retirement Savings Credit (Saver's Credit)
Avg savings: $500/year
Roth IRA Conversion Strategy
Avg savings: $5,000/year