New York (NY) Self-Employed Retirement Contribution Calculator
Tax year: 2026 · Figures for Tax Year 2026 · Source: IRS
Built and audited by the CalcSumly Engineering Team using official IRS and State Department of Revenue data.
Your Schedule C net profit before the retirement contribution deduction.
Age as of December 31. Determines your Solo 401(k) catch-up contribution tier (ages 50+, 60-63).
Solo 401(k)
Recommended$46,804
maximum contribution · 2026
SEP-IRA
$22,304
maximum contribution · 2026
At $120,000 of self-employment income in New York, a Solo 401(k) allows $46,804 maximum contribution versus $22,304 for a SEP-IRA — a difference of $24,500 in contribution capacity.
How self-employed retirement contributions work in New York for 2026
Solo 401(k) and SEP-IRA contributions are above-the-line deductions on Form 1040 Schedule 1. They reduce federal AGI but do not affect self-employment tax (SE tax is calculated on Schedule C net profit before contributions).
New York taxes federal AGI minus the New York standard deduction. Retirement contributions reduce federal AGI and therefore reduce New York taxable income at your marginal New York rate.
Solo 401(k) vs SEP-IRA comparison
The Solo 401(k) allows a larger contribution at most income levels because it adds an employee elective deferral ($24,500) before the employer profit-sharing portion. The SEP-IRA has only the employer portion (20% of net SE compensation, capped at $72,000). At very high incomes where the Solo 401(k) base also hits $72,000, the plans become equal unless you qualify for a catch-up contribution (Solo 401(k) only).
Catch-up contributions (Solo 401(k) only)
Filers age 50-59 or 64+ add $8,000 in catch-up above the §415(c) cap. Filers age 60-63 add $11,250 (SECURE 2.0 enhanced catch-up). SEP-IRA has no catch-up at any age.
Scope and limitations
This calculator models standard deduction filers. It does not include QBI deduction, health insurance deduction, other plan types, or interactions with employer 401(k) plans from W-2 employment. Consult a tax professional and plan custodian before contributing.
Sources
- IRS Notice 2025-67 — 2026 Retirement Plan Limits (§415, §402(g), §401(a)(17))
- IRS Publication 560 — Retirement Plans for Small Business (SEP, SIMPLE, Qualified Plans)
- IRS Rev. Proc. 2025-32 — 2026 Standard Deduction Amounts
- NY Dept. of Taxation and Finance — 2026 tax rates (Chapter 59, Laws of 2025, Part A)
- NY Dept. of Taxation and Finance — Standard Deductions 2025 (Tax Law § 614)
- Tax Foundation — New York Income Tax Rates 2026
Frequently asked questions
Do retirement contributions reduce self-employment tax?+
No. Solo 401(k) and SEP-IRA contributions are above-the-line deductions on Form 1040 Schedule 1, not Schedule C deductions. SE tax is calculated on Schedule C net profit before contributions. Contributions reduce federal AGI, which lowers federal income tax and most state income taxes, but SE tax is unchanged.
What is the maximum Solo 401(k) contribution for self-employed in 2026?+
The 2026 Solo 401(k) base maximum is $72,000 (§415(c)) plus catch-up: $8,000 for ages 50-59 or 64+ and $11,250 for ages 60-63 (SECURE 2.0). The employee elective deferral is $24,500. The employer portion is 20% of net SE compensation (IRS Pub 560 formula). The elective deferral plus employer contribution cannot exceed $72,000.
What is the maximum SEP-IRA contribution for 2026?+
The 2026 SEP-IRA maximum is 20% of net SE compensation (net profit minus the deductible half of SE tax), capped at $72,000. Net SE compensation is also capped at the §401(a)(17) compensation limit of $360,000. SEP-IRA has no employee deferral and no catch-up option.
Does New York recognize Solo 401(k) and SEP-IRA deductions?+
Yes. New York State conforms to federal treatment of self-employed retirement contributions. The deduction reduces federal AGI, which reduces New York taxable income (federal AGI minus the NY standard deduction of $8,000 single / $16,050 MFJ for 2026). New York rates range from 4% to 10.9%, so retirement contributions generate meaningful state savings.
How much state tax does a retirement contribution save in New York?+
For most freelancers earning $80,000 to $215,000, the marginal New York rate is 6.85%. A $46,000 Solo 401(k) contribution would save approximately $3,151 in New York State income tax. New York City residents pay an additional 3.078% to 3.876% NYC income tax, which is not included in this calculator.
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