What is the Roth IRA contribution limit for 2026?

$7,500, or $8,600 if you are 50 or older. The limit starts to phase out at $153,000 of modified AGI for single filers and $242,000 for married couples filing jointly, and is gone at $168,000 and $252,000.

Can a self-employed person contribute to a Roth IRA?

Yes. Self-employment income counts as compensation. For an IRA, that means your net profit less the deductible half of self-employment tax and any SEP or solo 401(k) contributions you make.

Can I have a solo 401(k) and a Roth IRA in the same year?

Yes. IRA limits are separate from workplace-plan limits, so a freelancer can max a solo 401(k) and still put $7,500 into a Roth IRA, as long as their income is under the Roth phase-out.

What is the most a self-employed person can put away in 2026?

Up to $72,000 in a solo 401(k) or SEP IRA, plus catch-up contributions in a solo 401(k) if you are 50 or older, plus $7,500 in an IRA. How much of that you can actually use depends on your profit.

2026 Roth IRA, SEP & Solo 401(k) Limits

October is when most freelancers first ask how much they can still put away for the year. The 2026 limits went up across the board. Here they are in one table, with what they mean if you work for yourself.

The short answer

In 2026 you can put $7,500 into a Roth or traditional IRA ($8,600 at 50 or over), defer $24,500 into a solo 401(k), and contribute up to $72,000 in total to a solo 401(k) or SEP IRA. Roth IRA contributions start phasing out at $153,000 of modified AGI for single filers.

Every 2026 limit in one table

Account	2026 limit	Age 50+
Roth or traditional IRA	$7,500	$8,600
Solo 401(k), employee deferral	$24,500	$32,500 (ages 60–63: $35,750)
Solo 401(k), total employee + employer	$72,000	Plus catch-up
SEP IRA	About 20% of net profit, max $72,000	No catch-up
SIMPLE IRA	$17,000	Higher with catch-up

The IRA, 401(k) and SIMPLE figures are from the IRS 2026 limits announcement.

$7,500Roth IRA contribution limit, up from $7,000Tax year 2026

Roth IRA income limits for 2026

A Roth IRA is the one account where your income can lock you out.

Filing status	Full contribution below	No contribution above
Single or head of household	$153,000	$168,000
Married filing jointly	$242,000	$252,000

Between those figures the limit shrinks gradually. The test uses modified adjusted gross income. For a freelancer, AGI is already after half of self-employment tax and any SEP or solo 401(k) contributions, which can bring you back under the line.

What counts as income for an IRA when you are self-employed

You can only contribute up to your earned income. When you work for yourself, that is not your profit. It is your profit less:

the deductible half of your self-employment tax, and
any SEP or solo 401(k) contributions you make for yourself.

At normal freelance incomes this does not bite. It matters if you had a thin year and plan to make a large solo 401(k) contribution, because that can leave too little earned income for a full IRA contribution.

Solo 401(k) vs SEP: the one that holds more

Both share the $72,000 ceiling, but they get there differently.

A SEP IRA allows one contribution, as the employer: about 20% of your profit after half of self-employment tax.

A solo 401(k) allows that same employer contribution plus an employee deferral of up to $24,500. At most freelance incomes, that makes it hold far more.

Retirement savings cut income tax, not self-employment tax

SEP and solo 401(k) contributions lower your income tax. They do not reduce self-employment tax, which is worked out on your profit before any of them.

Worked example: $100,000 of profit

A 40-year-old single freelancer with $100,000 of profit in 2026:

	Solo 401(k)	SEP IRA
Employee deferral	$24,500	—
Employer contribution	$18,587	$18,587
Plan total	$43,087	$18,587
Plus a Roth IRA	$7,500	$7,500
Total put away	$50,587	$26,087

The employer part is the same in both: 20% of $92,935, which is profit less half of self-employment tax. The solo 401(k) is ahead by the full $24,500 employee deferral.

What to do before the year ends

A new solo 401(k) can be opened after the year ends. Since SECURE 2.0, a sole proprietor setting up a first solo 401(k) can do it up to the filing deadline, without extensions, and still make employee deferrals for that first year. Not every provider handles this smoothly, so opening it by December is the simpler route.
A SEP IRA can be opened and funded up to your filing deadline, including extensions, which makes it the fallback if you miss December.
The IRA deadline is the April filing date: you can still make 2026 Roth IRA contributions until 15 April 2027.

Use the solo 401(k) calculator to see your own maximum for both plans, worked out from your profit.