How much can my business put into retirement for me in 2026?
The answer depends on your retirement plan type, but for 2026 the maximum a self-employed business owner can contribute is around $72,000 if under 50, $80,000 if 50 or older, and up to $83,250 for owners between ages 60 and 63. These figures represent the combined maximum for a solo 401(k) plan.
A solo 401(k) has two contribution sides. The employee deferral allows up to $24,500 in 2026 for owners under 50. On top of that, the employer contribution allows up to 25% of your compensation. Together these can reach $72,000 for someone under 50 with enough business income to support it.
If you are 50 or older, you can add a catch-up contribution of $7,500, bringing the total to $80,000. A newer rule for owners between ages 60 and 63 allows a higher catch-up of $11,250, pushing the maximum to $83,250. For medical business owners earning strong clinical income alongside practice revenue, these limits represent meaningful tax strategy opportunities.
A SEP IRA works differently. All contributions come from the employer side only, meaning your business contributes up to 25% of net self-employment earnings with the same $72,000 cap. Because there is no employee deferral piece, you need significantly higher income to reach that ceiling. Below roughly $175,000 of self-employment income, the solo 401(k) typically allows larger contributions than a SEP IRA would.
One timing detail matters. A solo 401(k) must be established by December 31 of the tax year, even if you fund it later. A SEP IRA can be opened and funded up to the extended filing deadline. If you are thinking about setting up a solo 401(k) for 2026, you need to have the plan in place before the year ends.
These figures are current as of 2026 and should be verified, as retirement plan rules change periodically. The right plan depends on your income, age, whether you have employees, and your overall situation. A CPA for medical businesses can help you determine which structure fits and make sure the plan gets established on time.
If you want help figuring out how much your business can contribute to retirement and which plan makes the most sense, reach out to schedule a consultation.
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