If you got a late start on saving for retirement, catch-up contributions are designed to help by offering slightly higher contribution limits each year. Once you turn 50, you’re allowed to contribute more to your Solo 401k than the standard limit. This can be especially beneficial since many people are in higher tax brackets later in their careers. With a higher contribution cap, you may be able to deduct more taxable income, potentially reducing the amount of taxes you owe.
In this article, we’ll explain how Solo 401k catch-up contributions work, how much extra you can contribute, and how they could reduce your taxable income as you approach retirement.
Maximize Your Retirement Savings With a Solo 401k
As a business of one, you can contribute more and potentially save more on taxes.* Carry’s Solo 401k is built for entrepreneurs, freelancers, and high earners who want flexible investing and bigger retirement contributions, all in one streamlined plan.
LEARN MORE*Solo 401(k) eligibility and contribution limits depend on IRS rules. Carry does not provide tax advice, consult a tax advisor. Carry Advisors LLC, an SEC-registered investment adviser, provides investment advisory services for discretionary and non-discretionary accounts (e.g., Solo 401(k), IRA, taxable brokerage accounts). Bank and trust accounts are not advised by Carry Advisors. Brokerage accounts are introduced by Global Carry LLC and carried by DriveWealth LLC, both members FINRA/SIPC. Advisory fees may apply and additional disclosures are described in our Form ADV and CRS.
What Is the Catch-up Contribution Amount for a Solo 401k?
For 2025, those eligible may contribute an additional $7,500 to their Solo 401k. This is on top of the standard combined contribution limit of $70,000, allowing a total of up to $77,500 for the year, provided income and plan rules allow it.
📝 Note: Catch-up contributions apply only to the employee portion of your Solo 401k.
📌 Also Read: Solo 401k Contribution Limits & Deadlines for 2024 & 2025
Who’s Eligible for Catch-up Contributions?
You’re eligible to make catch-up contributions if you’ll be age 50 or older by December 31, 2025. To qualify, you must first reach the employee contribution limit, which is $23,500 for 2025.
Once you’ve hit that, you may add the extra $7,500 in catch-up contributions.
How Do I Make Catch-up Contributions?
Solo 401k plans allow contributions from both the employee and the employer, each with separate rules and limits.
✅ As an employee you can contribute up to $23,500 in 2025.
✅ As an employer you can contribute:
• Up to 25 percent of W-2 wages (for incorporated businesses)
• Roughly 20 percent of net earnings (for unincorporated businesses)
The combined contribution limit is $70,000 for 2025, not including catch-up contributions. If you’re eligible, the $7,500 catch-up is added on top, bringing the potential total to $77,500.
📝 Note: Under SECURE 2.0, those between ages 60 and 63 may qualify for a higher “super” catch-up contribution—$11,250 in 2025—but that’s separate from the standard age-50 limit.
Can Catch-up Contributions Go Toward a Roth Solo 401k?
Yes. Catch-up contributions may be directed to either the Solo 401k (pre-tax) or Roth Solo 401k account (after-tax), depending on your plan structure.
What If I Made Pre-tax Contributions? Can I Still Choose Roth for the Catch-up?
Yes. You’re allowed to choose the type of tax treatment for each contribution, including catch-up amounts.
- Pre-tax contributions may lower your taxable income for the year
- Roth contributions require you to pay taxes today, but qualified withdrawals are tax-free in retirement
It’s up to you to decide which approach or combination best fits your financial strategy.
Where Do I Make Catch-up Contributions in My Account?
Most Solo 401k plan providers automatically factor in catch-up eligibility based on your age. If you don’t see the option in your dashboard or portal, contact your provider. They may need to manually update your contribution settings or limits.
When Is the Deadline to Apply Catch-up Contributions?
You must first open your Solo 401k and file your employee contribution election by December 31, 2025 to defer any 2025 income.
Note that your “election” is simply a record of how much you plan to contribute and to which account (pre-tax or Roth). You don’t have to deposit the funds immediately.
SECURE Act § 201 allows some flexibility:
✅ Sole proprietors may adopt a plan as late as their tax filing deadline (including extensions).
❌ However, income earned in 2025 can’t be deferred unless your election is in place by December 31, 2025.
Contribution Deadlines by Business Type
✅ Sole proprietorships, single-member LLCs, and C corps:
Deadline: April 15, 2026, or October 15, 2026 with extension
✅ S corporations, partnerships, and multi-member LLCs:
Deadline: March 15, 2026, or September 15, 2026 with extension
These deadlines apply to actual contributions made to the plan.
Do Other Retirement Plans Offer Catch-up Contributions?
Yes, catch-up contributions are also available in other retirement accounts:
✅ Traditional 401k – $7,500 standard catch-up in 2025
✅ 403b and 457b – $7,500 standard catch-up, with possible plan-specific additions
✅ SIMPLE IRA – $3,500 catch-up limit in 2025
✅ IRA (Traditional or Roth) – $1,000 catch-up limit for those age 50 and older
📌 Also Read: What Is A 401k? How It Works And Basic Rules
Disclaimer:
The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.
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