Are retirement contributions tax deductible if you’re self-employed?
Yes. Putting money into a SEP-IRA or a Solo 401(k) lowers your income tax, though not your self-employment tax.
The rule
The self-employed can put away far more than an ordinary IRA allows. A SEP-IRA takes up to 20% of net self-employment earnings. A Solo 401(k) takes that as the employer and up to $24,500 more as the employee in 2026, with extra catch-up room from age 50, up to $72,000 in all before catch-ups.
Contributions come off income, not off Schedule C, so they don’t change self-employment tax.
A SEP can be opened and funded as late as your filing deadline. A Solo 401(k) has its own deadlines for opening and for choosing what to put in as the employee, so set it up before the year ends if you can.
- Where it goes
- Schedule 1 line 16
- What to keep
- The plan documents and contribution statements.
Checked on September 25, 2026 against Publication 334, Tax Guide for Small Business. An estimate for your records, not tax advice.
See it on every receipt.
Snap it and Reimburse files it on the right Schedule C line, takes the deductible share and shows what it puts back.