Both IRAs and Solo 401(k) plans are great options to help people prepare for retirement. However, account holders aren’t allowed to contribute more than a certain amount each year. Understanding IRA and Solo 401(k) contribution limits is essential if you want to avoid tax penalties.
Despite the differences between a standard IRA and a Self-Directed IRA, limits on contributions aren’t among them: Whether you have a standard or Self-Directed IRA, the max contribution is the same.
No. The Self-Directed Roth IRA contribution limits are the same as those for a Traditional Self-Directed IRA.
As of 2025, the max contribution to a Self-Directed IRA is $7,000 per year for those younger than age 50. The amount individuals aged 50 and over can contribute is $8,000. For SEP IRAs, the limit is $70,000.
For Solo 401(k)s, the limit is $70,000 for those younger than 50 and $77,500 for those 50 or older. If you're a late-saver and 60-63 years of age, you're eligible for an added bonus catch-up contribution of $81,250. Your self-employment income will determine if you're able to contribute the maximum amount. Feel free to use our Solo 401(k) Contribution Calculator to help you determine your maximum contribution.
Here's a snapshot of the contribution limits:
| Retirement Plan | 2025 Limit: Under Age 50 | 2025 Limit: Age 50+ | 2024 Limit: Under Age 50 | 2024 Limit: Age 50+ |
|---|---|---|---|---|
| Solo 401(k) | $70,000 | $77,500 | $69,000 | $76,500 |
| IRA: Traditional and Roth | $7,000 | $8,000 | $7,000 | $8,000 |
| SEP IRA | $70,000 | $70,000 | $69,000 | $69,000 |
The maximum Solo 401(k) contribution can be confusing because, with a Solo 401(k), the account holder will be contributing in two different capacities, as both the employee and the employer.
In the employee role, you can contribute up to $23,000 in 2024 or $23,500 in 2025. For those 50 or older, the Self-Directed 401(k) limits allow for an additional $7,500 in both 2024 and 2025. If you are between ages 60 and 63, you can participate in a higher catch-up contribution of $11,250.
When acting as the employer, you can also contribute up to 25% of your net self-employment income.
The two parts are added together to determine the overall annual Solo 401(k) contribution.
Schedule a call with one of our Self-Directed Specialists today to get answers to your questions and find the investment vehicle that's right for you.
SCHEDULE A CALL
Address:
One Paragon Drive
Suite 270
Montvale, NJ 07645
Phone: (800) 395-5200
Mondays – Thursdays: 8:00 am – 5:00 pm EST
Fridays – 10:00 am – 4:00 pm EST