{
  "generatedAt": "2026-09-08",
  "taxYear": 2026,
  "entity": "Sole proprietor / single-member LLC filing Schedule C, under age 50",
  "method": "IRS Publication 560 deduction worksheet: net earnings = net profit less one-half deductible SE tax; employer rate 0.25/1.25 = 0.20 applied to net earnings capped at the 401(a)(17) compensation limit; totals capped at the 415(c) limit.",
  "statutoryFigures": {
    "electiveDeferral": 24500,
    "catchUp50": 8000,
    "catchUp60to63": 11250,
    "annualAdditions415c": 72000,
    "annualAdditionsWithCatchUp50": 80000,
    "annualAdditionsWithCatchUp60to63": 83250,
    "compensationLimit401a17": 360000,
    "socialSecurityWageBase": 184500
  },
  "sources": {
    "electiveDeferral": "https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500",
    "annualAdditionsAndCompensation": "https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits",
    "socialSecurityWageBase": "https://www.irs.gov/taxtopics/tc751"
  },
  "crossovers": {
    "soloReachesCapAtNetProfit": 252316,
    "soloReachesCapAtNetEarnings": 237498,
    "sepReachesCapAtNetProfit": 376478,
    "sepReachesCapAtNetEarnings": 359998,
    "extraProfitSepRequires": 124162,
    "flatAdvantageBelowSoloCap": 24500,
    "compensationLimitCalibratedTo415c": true
  },
  "sweep": [
    {
      "netProfit": 20000,
      "netEarnings": 18587,
      "employerPortion": 3717,
      "sepMaximum": 3717,
      "soloMaximum": 18587,
      "soloAdvantage": 14870
    },
    {
      "netProfit": 30000,
      "netEarnings": 27881,
      "employerPortion": 5576,
      "sepMaximum": 5576,
      "soloMaximum": 27881,
      "soloAdvantage": 22304
    },
    {
      "netProfit": 40000,
      "netEarnings": 37174,
      "employerPortion": 7435,
      "sepMaximum": 7435,
      "soloMaximum": 31935,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 50000,
      "netEarnings": 46468,
      "employerPortion": 9294,
      "sepMaximum": 9294,
      "soloMaximum": 33794,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 60000,
      "netEarnings": 55761,
      "employerPortion": 11152,
      "sepMaximum": 11152,
      "soloMaximum": 35652,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 75000,
      "netEarnings": 69701,
      "employerPortion": 13940,
      "sepMaximum": 13940,
      "soloMaximum": 38440,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 100000,
      "netEarnings": 92935,
      "employerPortion": 18587,
      "sepMaximum": 18587,
      "soloMaximum": 43087,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 125000,
      "netEarnings": 116169,
      "employerPortion": 23234,
      "sepMaximum": 23234,
      "soloMaximum": 47734,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 150000,
      "netEarnings": 139403,
      "employerPortion": 27881,
      "sepMaximum": 27881,
      "soloMaximum": 52381,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 175000,
      "netEarnings": 162637,
      "employerPortion": 32527,
      "sepMaximum": 32527,
      "soloMaximum": 57027,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 200000,
      "netEarnings": 185883,
      "employerPortion": 37177,
      "sepMaximum": 37177,
      "soloMaximum": 61677,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 250000,
      "netEarnings": 235213,
      "employerPortion": 47043,
      "sepMaximum": 47043,
      "soloMaximum": 71543,
      "soloAdvantage": 24500
    },
    {
      "netProfit": 275000,
      "netEarnings": 259879,
      "employerPortion": 51976,
      "sepMaximum": 51976,
      "soloMaximum": 72000,
      "soloAdvantage": 20024
    },
    {
      "netProfit": 300000,
      "netEarnings": 284544,
      "employerPortion": 56909,
      "sepMaximum": 56909,
      "soloMaximum": 72000,
      "soloAdvantage": 15091
    },
    {
      "netProfit": 350000,
      "netEarnings": 333874,
      "employerPortion": 66775,
      "sepMaximum": 66775,
      "soloMaximum": 72000,
      "soloAdvantage": 5225
    },
    {
      "netProfit": 400000,
      "netEarnings": 383205,
      "employerPortion": 72000,
      "sepMaximum": 72000,
      "soloMaximum": 72000,
      "soloAdvantage": 0
    },
    {
      "netProfit": 450000,
      "netEarnings": 432535,
      "employerPortion": 72000,
      "sepMaximum": 72000,
      "soloMaximum": 72000,
      "soloAdvantage": 0
    }
  ],
  "caveats": [
    "Sole proprietor on Schedule C; an S-corp owner's base is W-2 wages, not net profit.",
    "Under age 50 and no catch-up. Catch-up raises the 415(c) ceiling to $80,000 (50+) or $83,250 (60-63) and moves both crossovers.",
    "Ignores state tax, the QBI deduction, and the presence of any employees.",
    "The additional 0.9% Medicare tax is included in SE tax but excluded from the one-half deduction, per section 164(f)."
  ]
}