Solo 401(k) Calculator
Calculate your maximum Solo 401(k) contribution as a self-employed individual. Includes 2024 limits, catch-up contributions, and tax savings.
Business Type
Sole Prop/LLC: Contributions based on net self-employment income minus 1/2 SE tax.
Income
Business income minus business expenses (Schedule C line 31)
Personal Info
Tax Savings
Solo 401(k) vs SEP IRA
Solo 401(k) Advantage: $30,500 more per year vs SEP IRA
10-Year Growth Projection
2024 Contribution Limits
Solo 401(k) with Checkbook Control
A self-directed Solo 401(k) with "checkbook control" lets you invest in physical gold directly - without custodian approval for each purchase. This is one of the most powerful ways to hold precious metals in a retirement account.
- Write checks from plan account
- Buy gold directly from dealers
- No custodian fees per transaction
- American Gold Eagles
- Canadian Maple Leafs
- .995+ purity bars
- Gold must be stored in approved depository
- Cannot hold gold personally
- Annual reporting required
Key Insight: A Solo 401(k) with checkbook control lets you invest in physical gold directly. This gives you more control and potentially lower fees than a traditional Gold IRA, while sheltering up to $$65,131 per year.
Self-employed? Maximize your retirement savings with a Solo 401(k) that allows gold investments. Learn how to set up checkbook control for direct precious metals purchases.
Understanding Solo 401(k) Contributions
Two Types of Contributions
1. Employee Deferral
- Up to $23,000 (2024)
- +$7,500 catch-up if 50+
- Can be Traditional or Roth
- Shared limit across all 401(k)s
2. Employer Profit Sharing
- Up to 25% of compensation
- Must be Traditional (pre-tax)
- Separate limit per employer
- Optional - contribute any amount
Business Type Calculations
Sole Proprietor / Single-Member LLC
Compensation = Net SE Income - (1/2 of SE Tax)
Example: $150,000 net income = ~$138,725 compensation
S-Corporation
Compensation = W-2 wages paid to yourself
Must pay "reasonable compensation" for services performed
Solo 401(k) vs Other Options
| Plan Type | 2024 Max | Best For |
|---|---|---|
| Solo 401(k) | $69,000 ($76,500 if 50+) | No employees, max savings |
| SEP IRA | $69,000 | Simple setup, lower income |
| SIMPLE IRA | $16,000 ($19,500 if 50+) | Small business with employees |
| Traditional/Roth IRA | $7,000 ($8,000 if 50+) | Additional savings after 401k |
Why Choose a Solo 401(k)?
Highest Contribution Limits
Solo 401(k) allows up to $69,000 in 2024 ($76,500 if 50+). That's more than SEP IRA for most self-employed individuals.
Employee + Employer Contributions
Unlike SEP IRA (employer only), Solo 401(k) includes employee deferral up to $23,000 plus employer profit sharing.
Roth Option Available
The employee deferral portion can be Roth (after-tax), allowing tax-free growth and withdrawals in retirement.
Loan Feature
You can borrow up to $50,000 or 50% of your account balance. SEP IRAs don't allow loans.
2024 Solo 401(k) Contribution Limits
Understand the different components that make up your maximum contribution.
| Contribution Type | Under 50 | Age 50+ |
|---|---|---|
Employee Deferral Can be Traditional or Roth | $23,000 | $30,500 |
Employer Profit Sharing Up to 25% of compensation | Up to $46,000 | Up to $46,000 |
Total Maximum | $69,000 | $76,500 |
Note: The employee deferral limit is shared across all 401(k) plans. If you also contribute to an employer 401(k), the combined employee deferrals cannot exceed $23,000 ($30,500 if 50+).
Self-Directed Solo 401(k) for Gold
A self-directed Solo 401(k) with "checkbook control" is one of the most powerful ways to invest in physical gold within a retirement account. Unlike a traditional Gold IRA, you can:
With Checkbook Control
- Write checks directly to gold dealers
- No custodian approval for each purchase
- Lower transaction fees
- Faster purchases
Requirements
- Self-employment income required
- No employees (except spouse)
- Gold stored in approved depository
- Annual IRS reporting (Form 5500-EZ)
Key Insight: Solo 401(k) with checkbook control lets you invest in physical gold directly. This gives self-employed individuals more control and potentially lower fees than traditional Gold IRAs, while sheltering up to $76,500 per year from taxes.
Solo 401(k) Frequently Asked Questions
How much can I contribute to a Solo 401k in 2024?▼
In 2024, you can contribute up to $69,000 ($76,500 if age 50+). This includes up to $23,000 in employee deferrals ($30,500 if 50+) plus up to 25% of compensation as employer profit sharing. Your actual limit depends on your business income and structure.
What is the difference between Solo 401k and SEP IRA?▼
Solo 401(k) has two contribution types (employee deferral + employer), while SEP IRA only allows employer contributions. This means Solo 401(k) typically allows higher contributions at lower income levels. Solo 401(k) also offers Roth contributions and loan options that SEP IRA doesn't have.
Can I have a Solo 401k if I have employees?▼
A Solo 401(k) is only for self-employed individuals with no full-time employees (other than a spouse). If you have employees working 1,000+ hours/year, you'll need a traditional 401(k) plan or SEP IRA instead.
Can I invest my Solo 401k in gold?▼
Yes! A self-directed Solo 401(k) with 'checkbook control' allows you to invest in physical gold, silver, and other precious metals. The gold must be stored in an approved depository, not personally. This gives you direct investment control without needing custodian approval for each purchase.
What's the deadline for Solo 401k contributions?▼
The deadline is your tax filing deadline (including extensions). Employee deferrals must come from compensation earned during the year and should be contributed promptly. Employer contributions can be made up until your tax deadline.
Important Disclaimer
This calculator provides estimates based on 2024 IRS limits and general rules. Your actual contribution limits depend on your specific business structure, income, and other factors. Solo 401(k) plans have complex rules and reporting requirements. We recommend consulting with a qualified tax professional or retirement plan specialist before establishing a Solo 401(k). This is not tax or financial advice.
Ready to Set Up a Solo 401(k) for Gold?
Self-employed individuals can shelter up to $76,500 per year while investing in physical gold. Get expert guidance on setting up a self-directed Solo 401(k) with checkbook control.