Tax-Advantaged Savings Optimizer
The stack of accounts that shelters the most income at your numbers — which employer plan wins, plus the IRA and HSA that layer on top.
Written by Dorothy Ibrahim, 10+ years in banking & finance
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How we calculate this
Self-employed savers have more tax-advantaged options than employees, not fewer — the trick is knowing which stack and which overlap. This calculator takes your net profit, age, filing status, and health-plan situation and returns a single recommended stack: the employer plan that shelters more (Solo 401(k) or SEP), plus the IRA and HSA that layer on top. It reports the total you could shelter this year and whether your IRA slice can be a Roth.
The formulas
- Employer plan (best)
- the larger of the Solo 401(k) total and the SEP IRA contributionThey serve the same role, so you fund only one — this picks the bigger shelter.
- IRA limit
- annual IRA limit + age-50 catch-up if eligibleStacks on top of the employer plan.
- HSA limit
- (self or family HDHP limit) + age-55 catch-up, if you have an HSA-eligible HDHP
- Roth allowed
- IRA limit phased down by MAGI (net profit used as a proxy)The share of the IRA slice that can be Roth.
- Total shelterable
- best employer plan + IRA limit + HSA limit
Worked example
- With the defaults — $100,000 net profit, age 40, single, 2026, with an HSA-eligible self-only HDHP — the tool sizes both employer plans: a Solo 401(k) totals about $43,087 (employee deferral plus the ~20% employer contribution) versus a SEP IRA of about $18,587.
- The Solo 401(k) wins, so the best employer plan is about $43,087; the SEP figure is shown only for comparison.
- On top of that, the full IRA limit of $7,500 stacks (and at this income the whole $7,500 can be a Roth), plus the self-only HSA limit of $4,400.
- Total shelterable = $43,087 + $7,500 + $4,400 ≈ $54,987 this year — about 55% of net profit that could go into tax-advantaged accounts.
Rates, benchmarks & sources
- 2026 retirement plan contribution limits (Solo 401(k), SEP, IRA catch-up). — IRS Notice 2025-67
- Retirement Plans for Small Business (SEP, SIMPLE, and qualified plans). — IRS Publication 560
- Contributions to IRAs, including the Roth MAGI phase-out ranges. — IRS Publication 590-A
- HSAs and other tax-favored health plans; annual HSA contribution limits. — IRS Publication 969
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- It assumes a sole proprietor with no employees; adding employees triggers nondiscrimination and coverage rules that change SEP and Solo 401(k) contribution room.
- Roth eligibility uses net profit as a proxy for MAGI, which can differ from your true modified adjusted gross income once other income and adjustments are included.
- The totals are contribution ceilings, not a funding schedule — they show the maximum you could shelter, not an amount you must contribute.
- It is an educational estimate for planning, not tax advice, and does not replace confirming the mix and amounts with a CPA/EA before opening accounts.
Frequently asked questions
What is the best retirement account for the self-employed?
It depends on income, but the usual winner for maximum shelter is a Solo 401(k), because it combines an employee deferral with an employer contribution. A SEP IRA is simpler but usually shelters less at the same income. On top of whichever employer plan you pick, an IRA and (if you have a high-deductible health plan) an HSA both stack.
Can I have a Solo 401(k) and a SEP at the same time?
For one business it rarely makes sense to run both — they serve the same role and share contribution limits. This tool picks the one that shelters more and treats it as your employer plan, then adds the accounts that genuinely stack: an IRA and an HSA. Running both employer plans adds complexity without adding room.
Does the HSA really belong in a retirement stack?
Yes. An HSA is triple-tax-advantaged — deductible going in, tax-free growth, and tax-free withdrawals for medical costs — and after age 65 it works like a traditional IRA for any purpose. If you have an HSA-eligible high-deductible health plan, it is one of the most efficient shelters available, which is why it appears in the stack.
Are these amounts what I should actually contribute this year?
No — the tool sizes the ceilings, the maximum each account allows at your numbers. How much of each to actually fund depends on your cash flow. A common priority is to fund an HSA first, then the employer plan up to what you can afford, then the IRA; even partial contributions to the highest-leverage account beat waiting for a year you can max everything.