Solo 401(k) vs SEP IRA Calculator
Compare your maximum contribution under a Solo 401(k) versus a SEP IRA based on your net self-employment income. Estimates based on 2025 limits — not individualized tax or investment advice.
Solo 401(k) lets you contribute more
$23,500 more
Solo 401(k) — max
$34,652
Employee $23,500 + employer $11,152
SEP IRA — max
$11,152
Employer-only (~20% of earnings)
Based on 2025 limits (overall cap $70,000; employee deferral $23,500; age-50+ catch-up $7,500). Simplified estimate — not individualized tax or investment advice.
Stop doing this by hand
Gigaverse tracks your income, mileage, deductions, quarterly taxes, and retirement automatically — so the numbers above just happen.
Frequently asked questions
What’s the difference between a Solo 401(k) and a SEP IRA?
A SEP IRA contribution is employer-only (about 20% of net self-employment earnings). A Solo 401(k) adds an employee elective deferral on top of the employer portion, so at lower-to-moderate incomes it usually allows a larger total contribution. Both are capped at the overall limit ($70,000 for 2025).
Which is better for a gig worker?
It depends on your income and goals. Solo 401(k)s often allow more at moderate incomes and offer a Roth option and loans; SEP IRAs are simpler to open. This calculator compares the limits — consult a tax professional for your situation.
Can I open one through Gigaverse?
The Gigaverse PRActicle™ supports portable IRA options via a FINRA/SIPC-member broker-dealer. Use this calculator to compare contribution room before you choose.
More free tools
Disclaimer: This calculator is for educational and informational purposes only and does not constitute financial, tax, or investment advice. All results are hypothetical estimates based on the inputs and stated assumptions, are not guarantees, and do not account for your full tax situation, state taxes, or credits. Gigaverse AI, Inc. is not a bank; brokerage services are provided through a FINRA/SIPC-member broker-dealer. Consult a qualified professional before making financial decisions. Full disclosures →