Solo 401(k) Contribution Limits: 2025 vs. 2026
Side-by-Side Comparison
| Year | Employee Elective Deferral Limit (under 50) | Standard Catch-Up (age 50-59 or 64+) | Additional Catch-Up (age 60-63, if plan allows) | Employer (Profit-Sharing) Contribution | Total Combined Limit (under 50) | Total Combined Limit (age 50-59 or 64+) | Total Combined Limit (age 60-63) |
| 2025 | $23,500 | $7,500 (total employee deferral = $31,000) | $11,250 (total employee deferral = $34,750) | Up to 25% of W-2 wages or ~20% of net SE income | $70,000 | $77,500 | $81,250 |
| 2026 | $24,500 | $8,000 (total employee deferral = $32,500) | $11,250 (total employee deferral = $35,750) | Up to 25% of W-2 wages or ~20% of net SE income | $72,000 | $80,000 | $83,250 |
Key Differences Between 2025 and 2026
- Employee Elective Deferral (Under Age 50)
- 2025: $23,500
- 2026: $24,500
Increase: +$1,000
- Standard Catch-Up (Age 50–59 and Age 64+)
- 2025: $7,500
- 2026: $8,000
Increase: +$500
- Additional Catch-Up (Age 60–63, “Super” Catch-Up)
- 2025: $11,250
- 2026: $11,250
Change: No increase
- Combined Contribution Limit (Employee + Employer)
- Under Age 50:
- 2025: $70,000
- 2026: $72,000
- Increase: +$2,000
- Age 50–59 or 64+:
- 2025: $77,500
- 2026: $80,000
- Increase: +$2,500
- Age 60–63:
- 2025: $81,250
- 2026: $83,250
- Increase: +$2,000
Practical Notes for Solo 401(k) Owners
Employer Contribution Rules Stay the Same
- Up to 25% of W-2 wages if incorporated.
- Approximately 20% of net self-employment income for sole proprietors.
Age-Based Planning
- Ages 60–63 still have the highest possible employee contribution because of the additional catch-up.
- The standard catch-up rising to $8,000 in 2026 provides slightly more room for participants 50–59 and 64+.
Roth Requirement Change in 2026
Under SECURE 2.0, beginning in 2026, certain higher-income taxpayers must make catch-up contributions on a Roth (after-tax) basis, not pre-tax. This may impact tax planning for owners who prefer pre-tax contributions.
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