SCorpDesk / 2026 S-Corp & QBI Guides / 2026 S-Corp Solo 401(k) vs. SEP IRA Calculator: How W-2 Salary Sets Your $70,000 Cap
2026 S-Corp Solo 401(k) vs. SEP IRA Calculator: How W-2 Salary Sets Your $70,000 Cap
How do you calculate the maximum 2026 Solo 401(k) contribution for an S-Corp owner?
In an S-Corporation, only your Form W-2 Officer Salary (not your K-1 distribution) counts for retirement plan contributions. For 2026, you can contribute up to $24,500 as an employee elective deferral (plus $7,500 catch-up if 50+) plus an employer profit-sharing contribution of up to 25% of your W-2 salary.
In an S-Corporation, only your Form W-2 Officer Salary (not your K-1 distribution) counts for retirement plan contributions. For 2026, you can contribute up to $24,500 as an employee elective deferral (plus $7,500 catch-up if 50+) plus an employer profit-sharing contribution of up to 25% of your W-2 salary.
Frequently Asked Questions
How do you calculate the maximum 2026 Solo 401(k) contribution for an S-Corp owner?
In an S-Corporation, only your Form W-2 Officer Salary (not your K-1 distribution) counts for retirement plan contributions. For 2026, you can contribute up to $24,500 as an employee elective deferral (plus $7,500 catch-up if 50+) plus an employer profit-sharing contribution of up to 25% of your W-2 salary.