Ohio (OH) 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 Ohio, 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 Ohio 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).
Ohio taxes federal AGI minus the Ohio standard deduction. Retirement contributions reduce federal AGI and therefore reduce Ohio taxable income at your marginal Ohio 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
- Ohio Revised Code § 5747.02 — income tax rates as amended by HB 96
- Ohio HB 96 (136th General Assembly) — income tax restructuring, enacted June 30, 2025
- Ohio Department of Taxation — Individual Income Tax
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 Ohio recognize Solo 401(k) and SEP-IRA deductions?+
Yes. Ohio conforms to federal treatment of self-employed retirement contributions. The deduction reduces federal AGI, which reduces Ohio taxable income. Ohio has a 0% rate on the first $26,050 and a 2.75% rate above that for 2026. For most freelancers with net profit above $40,000, the retirement contribution will save Ohio income tax at the 2.75% rate.
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