2027 Contribution Limits How Contributions Work Catch-Up Contributions (50+)Deadlines & Timing Key Factors Examples FAQ Next Steps Sources

2027 Solo 401k Contribution Limits

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2027 Solo 401k Summary

Category	Limit	Deadline
Employee Deferral (Under 50)	$25,500	December 31, 2027
Employee Deferral (50+)	$34,000 ($25,500 + $8,500 catch-up)	December 31, 2027
Employee Deferral (60-63)	$37,250 ($25,500 + $11,750 catch-up)	December 31, 2027
Employer Profit-Sharing	Up to 25% of Compensation (20% of net earnings after half of self-employment tax for a sole proprietor)	Tax filing deadline (with extensions)
Total Maximum (Under 50)	$75,000	Varies by contribution type
Total Maximum (50+)	$83,500	Varies by contribution type
Total Maximum (60-63)	$86,750	Varies by contribution type
Plan Setup Deadline	Tax filing deadline (with extensions)

For Tax Year 2027, the IRS adjusted contribution limits for inflation in IRS Notice 2026-66^[1]. Below, we break down the elective deferral (employee), profit-sharing (employer), and catch-up contribution limits.

While we strive to keep these figures updated based on official IRS announcements, always verify the current IRS limits to ensure compliance.

2027 Contribution Limits

For Tax Year 2027, the IRS has adjusted limits to account for inflation^[1]:

Employee (Elective Deferral) Limit

Up to $25,500 of your compensation can be contributed on a pre-tax or Roth (after-tax) basis.
If you're age 50 or older, you can make an additional $8,500 in catch-up contributions, bringing your total elective deferral to $34,000.
If you're age 60 to 63, you can make an additional $11,750 in catch-up contributions, bringing your total elective deferral to $37,250.

Employer (Profit-Sharing) Contribution

The Nonelective Contribution can be up to 25% of Compensation for an S Corporation owner. For a sole proprietor, the same 25% plan rate works out to 20% of net earnings from self-employment, figured after the deduction for half of self-employment tax and without deducting the contribution itself.^[3][4][5]
These contributions are typically made on a pre-tax basis, reducing your taxable income.

Overall Maximum (Employee + Employer)

The combined total of all employee and employer contributions (excluding catch-up) can be as high as $75,000 for 2027.
If you're eligible for catch-up contributions (50+), your maximum can reach $83,500 (i.e., $75,000 + $8,500 catch-up), subject to your compensation.
If you're eligible for the age 60-63 catch-up, your maximum can reach $86,750 (i.e., $75,000 + $11,750 catch-up), subject to your compensation.

How Contributions Work: Two Roles, One Business

In a Solo 401k, you wear two hats:

Employee: You can contribute up to the "elective deferral" limit ($25,500 for 2027) out of your compensation.
Employer: You can also add a profit-sharing contribution on behalf of your business.

By combining these two roles, you can reach much higher total contributions than with most other self-employed retirement plans (e.g., SEP IRA, SIMPLE IRA).

Catch-Up Contributions (50+)

If you're age 50 or older by December 31, 2027, you qualify for additional "catch-up contributions." This is a separate bucket from the overall limit:

2027: $8,500 catch-up

These catch-up amounts can make a significant difference if you're looking to supercharge your retirement savings in your 50s or beyond.

Roth catch-up rule: if your FICA wages from the business exceeded $155,000 in 2026, your 2027 Catch-Up Contributions must be Roth^[1]; Sole Proprietors have no FICA wages, so it doesn't apply to them^[2]. See who the Roth catch-up rule covers.

Catch-Up Contributions (60-63)

If you're between ages 60 and 63 by December 31, 2027, you qualify for an even larger catch-up contribution amount:

2027: $11,750 catch-up

This enhanced catch-up provision allows those nearing retirement to make significant additional contributions during these specific years, helping to maximize retirement savings during the final stretch of your career.

Deadlines & Timing

Employee Deferrals

An owner must elect Elective Deferrals by the end of the Tax Year, and can then deposit them by the tax return filing deadline, including extensions.^[3] For 2027, that means electing by December 31, 2027.

Employer (Profit-Sharing) Contributions

Employer Contributions for a Tax Year can be deposited as late as the business’s tax return due date, including extensions.^[3] The IRS hasn't published the due dates for 2027 returns yet.

Plan Setup Deadline

A business can set up a Solo 401k for a Tax Year as late as its tax filing deadline, including extensions, and still make Employer Contributions for that year. A sole proprietor with no employees can also make Elective Deferrals for that first year if the plan is adopted by the filing deadline without extensions.^[3] Check with your provider for specific documentation requirements and processing times.

Key Factors Influencing Your 2027 Contribution

Your Net Income / W-2 Wages: The higher your compensation, the easier it is to maximize contributions.
Business Structure: If you're an S-corp, your employee deferrals are based on your W-2 salary, while profit-sharing is based on that same salary. As a sole proprietor, it's based on net profit from Schedule C, minus certain adjustments.
Age 50+ Status: Being 50 or older lets you add the $8,500 catch-up contribution on top of the standard limit.
Age 60-63 Status: Being between 60 and 63 allows for an enhanced catch-up contribution of $11,750 instead of the standard $8,500.
Plan Provisions: Some providers require you to specifically elect Roth or pre-tax each year. Ensure your adoption agreement allows for both if you want maximum flexibility.

2027 Contribution Examples

Under Age 50

Elective Deferral: $25,500
Profit-Sharing: $20,000 (assume 25% of $80,000 in W-2 Compensation from an S Corporation)
Total: $45,500 (still well under the $75,000 overall limit, so you could contribute even more if your income supports it)

Age 50+

Elective Deferral: $25,500
Catch-Up: $8,500
Profit-Sharing: $25,000 (assume 25% of $100,000 in W-2 Compensation from an S Corporation)
Total: $59,000 (still under the $83,500 overall limit including catch-up)

Age 60-63

Elective Deferral: $25,500
Catch-Up: $11,750
Profit-Sharing: $30,000 (assume 25% of $120,000 in W-2 Compensation from an S Corporation)
Total: $67,250 (still under the $86,750 overall limit including enhanced catch-up)

Frequently Asked Questions

Can I have a Solo 401k if I already have a 401k at my day job?

Yes. You can open a Solo 401k for your self-employed business while you participate in an employer's 401k. Your employee deferrals are shared across all 401k plans: combined, they can't exceed $25,500 in 2027 ($34,000 if you're 50-59 or 64+, or $37,250 if you're 60-63). If you defer $15,000 through your day job's 401k, you can defer only $10,500 more into your Solo 401k. Employer contributions aren't shared: your day-job match and your Solo 401k profit-sharing contribution each count only against their own plan's annual additions limit ($75,000 in 2027 before catch-ups).

Can I mix Roth and pre-tax contributions in 2027?

Yes, if your plan allows it. The $25,500 employee deferral limit applies to the combined total of Roth and pre-tax contributions. You can split this amount however you prefer between the two types.

What if my income varies throughout the year?

You can adjust your contribution rates as needed, but ensure your total employee deferrals don't exceed the annual limit. For profit-sharing, you'll typically calculate the final amount after your books are closed for 2027.

Next Steps for 2027

1. Plan Your Contributions: Use our 2027 Contribution Calculator to estimate your maximum contribution potential.

2. Set Up Your Plan: If you haven't already, establish your Solo 401k before your 2027 tax filing deadline.

3. Choose a Provider: Compare options on our Providers page to find the best fit for your needs.

4. Mark Key Dates: Set reminders for contribution deadlines and required documentation.

Sources

Notice 2026-66, 2027 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living — Internal Revenue Service. Verified November 14, 2026.
Notice 2023-62, Guidance on Section 603 of the SECURE 2.0 Act with Respect to Catch-Up Contributions — Internal Revenue Service. Verified November 3, 2026.
Publication 560 (2025), Retirement Plans for Small Business — Internal Revenue Service. Verified November 3, 2026.
One-Participant 401(k) Plans — Internal Revenue Service. Verified November 3, 2026.
26 U.S.C. §404. Deduction for contributions of an employer to an employees' trust or annuity plan and compensation under a deferred-payment plan — Office of the Law Revision Counsel, via GovInfo. Verified November 3, 2026.

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