Calculate your SEP-IRA
Your SEP-IRA summary
With vs. without SEP-IRA
Projected growth at your contribution level
| Year | Annual contribution | Total balance | Tax saved (cumulative) |
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What is a SEP-IRA and why should gig workers care?
A SEP-IRA (Simplified Employee Pension Individual Retirement Account) lets self-employed workers contribute up to 25% of their net self-employment compensation — up to $69,000 in 2025. Every dollar you contribute reduces your taxable income dollar-for-dollar, saving you both income tax and reducing the base on which certain phase-outs apply.
SEP-IRA vs Solo 401(k)
The SEP-IRA is simpler — no annual filing requirements, easy to set up at any major brokerage. The Solo 401(k) allows higher contributions at lower income levels because you can also make employee contributions (up to $23,500 in 2025). If you earn under ~$100K and want to maximize contributions, compare both using our calculators.
How to open one
SEP-IRAs are available at all major brokerages — Fidelity, Vanguard, Schwab, and others. You can contribute for the prior tax year up until your tax filing deadline (including extensions), giving you flexibility to determine your contribution amount after seeing your final income.