Solo 401k · catch-up contributions · 4% SWR

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Contractor Retirement Catch-Up Calculator

Started saving late? See what aggressive catch-up actually looks like. Side-by-side balance projections, monthly income at retirement, milestone timeline, and Solo 401k limits — the most powerful retirement account for contractors.

401(k) Limit 2024$23,000(+$7,500 catch-up 50+)

Roth IRA Limit$7,000(MAGI phase-out applies)

S&P 500 Avg Return~10%/yr(nominal, historical)

Your Situation

Current age

Retirement age

Current savings

Expected annual return7% = historical stock avg

Retirement targetAdjust to your goal

Current savings vs target5.7% of $1.50M

Contribution Scenarios

Current monthly contribution

Catch-up monthly contributionWhat you could push to

Extra per month:+$1,500/mo→ generates+$1.02M at retirement

Current Pace ($500/mo)

$764K

Monthly income (4% SWR)$2,548/mo

Gap to target-$736K

Years to hit target31.9 yrs

Catch-Up Pace ($2,000/mo)

$1.79M

Monthly income (4% SWR)$5,959/mo

Gap to targetOn track ✓

Years to hit target20.9 yrs

Years to Retirement

Age 42 → 65

Catch-Up Balance

$1.79M

vs $764K at current pace

Income Delta

+$3,411/mo

Extra monthly income at retirement

Solo 401k Employee Max

$23,000

2024 limit

Milestone Timeline

$100K

1.2 yrs

0.5 yrs

$250K

9.7 yrs

4.7 yrs

$500K

17.7 yrs

9.7 yrs

$1000K

26.5 yrs ⚠

16.4 yrs

$1500K

31.9 yrs ⚠

20.9 yrs

$2000K

35.9 yrs ⚠

24.4 yrs

Current paceCatch-up pace

Solo 401(k) — 2024 Contribution Limits

As a self-employed contractor, you can contribute up to $23,000/yr as the employee (under 50 limit) plus an employer contribution of up to 25% of net self-employment income — total cap of $69,000 in 2024. This is the most powerful retirement account available to contractors.

Future value — current pace

FV = PV × (1+r)ⁿ + PMT × ((1+r)ⁿ − 1) / r

PV=$85K, PMT=$500/mo, r=0.00583/mo, n=276 months

= $764K

r = 7% annual ÷ 12. n = 23 years × 12 months. Historical S&P 500 avg ≈ 10% nominal; 7% real (inflation-adjusted).

Future value — catch-up pace

FV = PV × (1+r)ⁿ + PMT × ((1+r)ⁿ − 1) / r

same PV + PMT=$2,000/mo ($1,500 more)

= $1.79M (+$1.02M delta)

Extra $1,500/mo compounding for 23 years creates $1.02M more at retirement. ROI on extra contributions: 2.5× (every $1 in becomes $2.5).

Monthly income at retirement (4% safe withdrawal rate)

income = FV × 4% ÷ 12

Current: $764K × 4% ÷ 12 | Catch-up: $1.79M × 4% ÷ 12

= Current: $2,548/mo | Catch-up: $5,959/mo

The 4% rule (Bengen 1994) has a 95%+ success rate over 30-year retirements. Adjust down to 3.5% for 40+ year retirements or higher equity allocations.

Bengen (1994) — 4% withdrawal rate; Morningstar 2023 recommends 3.8% for new retirees

2024 IRS contribution limits (tax-advantaged space)

max_annual = 401k_limit + IRA_limit

$23,000 (401k) + $7,000 (IRA)

= $30,000/yr = $2,500/mo

You're contributing $24,000/yr toward a $30,000/yr annual tax-advantaged ceiling. $6,000/yr in additional tax-advantaged space remains untapped.

IRS Notice 2023-75 — 2024 retirement plan contribution limits

Years to hit target

n = ln((target + PMT/r) / (PV + PMT/r)) / ln(1+r) / 12

target=$1.50M, r=0.070

= Current: 31.9 yrs | Catch-up: 20.9 yrs

Catch-up contributions save 11.0 years to target. That's 11.0 additional retirement years bought for $1,500/mo.

Opportunity cost of waiting one year to increase contributions

cost = (FV_catchup_now − FV_catchup_delayed) at retirement

$1,500/mo × 12 months delayed × compound growth for 23yr

= $85,330

One year of delay on $1,500/mo extra contributions costs approximately $85,330 at retirement due to lost compounding. Start now.

Key insight

The single most powerful variable in catch-up saving isn't rate of return — it's time and contribution amount. An extra $1,000/mo at 7% for 20 years generates ~$520,000 more at retirement. Contractors have a massive advantage here: Solo 401k allows $69k+ per year in total contributions vs $23k for a W2 employee's 401k alone. Use it aggressively in high-revenue years.

Use this result in →

Roth vs Traditional →FI Number →HSA Optimizer →

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