The IRS adjusts retirement contribution limits for inflation every year, and 2026 brought increases across nearly every account type available to the self-employed. Here is a single reference for the numbers that actually apply this year.
Solo 401(k): the highest ceiling available
For 2026, you can defer up to $24,500 as the 'employee' side of a Solo 401(k), plus an employer profit-sharing contribution, for a combined limit of $72,000. Savers age 50-59 (and 64+) can add an $8,000 catch-up on top of that combined limit, and a special higher catch-up of $11,250 applies to savers who are age 60 to 63 by year-end, under a SECURE 2.0 provision.
SEP IRA: simpler, but capped lower without the deferral
A SEP IRA's 2026 limit is $72,000 or 25% of compensation, whichever is less — the same overall ceiling as a Solo 401(k), but without the flat-dollar employee deferral piece that makes the Solo 401(k) reach that ceiling faster at moderate income levels. There is no catch-up contribution option for a SEP IRA at any age.
Traditional and Roth IRA: modest but still worth using
The 2026 IRA contribution limit is $7,500, or $8,600 if you're 50 or older. Roth IRA eligibility phases out starting around $153,000 of modified AGI for single and head-of-household filers, and around $242,000 for married couples filing jointly — high earners who phase out of direct Roth contributions can still use a backdoor Roth IRA strategy.
A high-earner catch-up rule that started in 2026
Starting in 2026, catch-up contributions for anyone whose FICA wages exceeded $150,000 in the prior year must be made as Roth (after-tax) contributions rather than pre-tax, if their plan even offers a Roth option. This mainly affects freelancers who've elected S-corp status and pay themselves a substantial W-2 salary — a sole proprietor with no W-2 wages generally isn't affected by this particular rule.
Frequently asked questions
Do these limits apply to the 2025 return I'm filing now, or the 2026 return I'll file next year?
These are 2026 limits, which apply to contributions made during the 2026 calendar year and will be reported on the return you file in early 2027.
Can I contribute the maximum to both a Solo 401(k) and a Traditional IRA in the same year?
Yes, they're governed by separate limits, though having a Solo 401(k) may limit how much of a Traditional IRA contribution you can deduct depending on your income.
What's the deadline to open a Solo 401(k) for the 2026 tax year?
The plan generally needs to be established by December 31, 2026, even though the actual contribution can often be made up until your tax filing deadline, including extensions.