🏦Retirement Limits 2026
Solo 401(k) vs SEP-IRA

Solo 401(k) vs SEP-IRA: 2026 Side-by-Side

Full feature comparison of Solo 401(k) and SEP-IRA in 2026, including limits, catch-up, Roth, loans, and deadlines.

FeatureSolo 401(k)SEP-IRA
2026 employee deferral$24,500Not allowed
2026 employer portionUp to 25% of compUp to 25% of comp
2026 total cap$72,000$72,000
Catch-up 50+$8,000None
Super catch-up 60-63$11,250None
Roth optionYes (if plan allows)Technically yes (SECURE 2.0) but rare
Plan loansUp to $50,000No
Setup deadline for 2026Dec 31, 2026Tax day 2027
Funding deadlineTax day + extensionsTax day + extensions
Form 5500-EZOnce assets > $250kNever
Employees allowedOnly spouseSEP must include eligible employees

Bottom line: Solo 401(k) wins on flexibility and total shelter at low-to-mid income levels. SEP-IRA wins on simplicity and no annual filing. At high income levels both reach the same $72,000 cap, but Solo still has Roth, catch-up, and loans.

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